Bitcoin holders can now stake $BTC on Starknet without surrendering custody, earning rewards while contributing to the layer-2 network's security. The Starknet Foundation is backing this BTCFi rollout with 100 million STRK in incentives.
The mechanism does not alter Bitcoin's base layer proof-of-work consensus. Instead, it relies on wrapped versions, including WBTC, tBTC, Liquid Bitcoin, and SolvBTC, that can be delegated on Starknet. These tokenized assets participate in Starknet's consensus alongside STRK following an on-chain vote in August.
StarkWare CEO Eli Ben‑Sasson said the initiative fulfills a promise to unleash Bitcoin's power. The technology merges zk‑STARK cryptography with Bitcoin holdings, providing post‑quantum security while generating real yield for holders. Ben‑Sasson believes this approach aligns with Satoshi's vision of true ownership.
The Starknet Foundation's 100 million STRK allocation aims to boost the BTCFi ecosystem by incentivizing borrowing against Bitcoin. The goal is to make Starknet the most cost‑effective venue for using Bitcoin as collateral while fueling yield strategies across the network.
Digital asset investment firm Re7 Capital plans to launch a new Bitcoin‑denominated yield product on Starknet in October. The strategy will generate returns directly in Bitcoin through off‑chain derivatives trading, curated DeFi yield strategies, and participation in BTC staking on Starknet.
Re7 founder Evgeny Gokhberg said the strategy aims to compound BTC holdings sustainably and securely. The product meets institutional standards while remaining accessible to retail investors through its tokenized format.
These initiatives represent the first wave of planned BTCFi developments on Starknet since June 2024, when the network outlined plans to expand beyond Ethereum. The ultimate goal is to become Bitcoin's execution layer, addressing scale limitations that prevent daily Bitcoin transactions for everyday purchases like coffee.