BitGo Strengthens Its Ecosystem through Collaboration with Stacks and Launch of sBTC Support
In Brief
BitGo has made waves with its recent integration with Stacks, which enhances Bitcoin's usability through functionalities like delegate and solo stacking.
BitGo has completed its integration with the Layer 2 solution Stacks , now offering support for sBTC and adhering to the Stacks token standard known as SIP-10. This step is anticipated to expand BitGo's role in the ecosystem and elevate Bitcoin's utility by incorporating both stacking methods.
sBTC stands out as a non-custodial and programmable digital asset, backed one-to-one by Bitcoin, intended to streamline the decentralized transfer of BTC across various Bitcoin layers.
With the new stacking feature, BitGo users can directly receive BTC rewards in their wallets, allowing for a secure and effective way to grow their Bitcoin assets without taking on the risks associated with lending. This integration opens up fresh opportunities for Bitcoin enthusiasts to engage with decentralized finance (DeFi), especially for those who have previously hesitated due to concerns regarding smart contracts and proof-of-stake (PoS) mechanisms.
BitGo Aims To Operate As A Stacks ‘Signer’
Additionally, through this partnership, BitGo will serve as a ‘Signer’ within the network, actively participating in consensus and block production. Signers play a crucial role in the decentralized framework, enabling the transfer of BTC between the primary and secondary layers of the Bitcoin network.
Stacks is recognized as a Layer 2 solution for Bitcoin that empowers smart contracts and decentralized applications (dApps) to leverage Bitcoin as a foundational layer. Earlier this year, Stacks embarked on rolling out its Nakamoto release , designed to improve transaction speeds while ensuring transactions benefit from Bitcoin's full finality on the Stacks Layer. Currently, notable entities among the Stacks ‘Signers’ include Blockdaemon, NEAR Foundation, Kiln, and others. As of now, according to DeFiLlama, the platform has achieved a total locked value (TVL) exceeding $93 million.
As a key infrastructure provider for digital asset solutions, this platform offers an array of services including custody, wallets, staking, trading, financing, and settlement, all managed through safely regulated cold storage.
Recently, BitGo has introduced custody for the native ERC-20 governance token of Wormhole, known as W. This new functionality allows users to store W in hot wallets, custodial wallets, and self-managed cold wallets.
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