New York, New York, 22 April 2025 – BitGo, the leading digital asset custody and infrastructure provider, has announced the integration of sBTC, Stacks’ 1:1 bitcoin-backed asset, opening up new opportunities for institutional participation in Bitcoin DeFi. As an early supporter of Stacks, BitGo was one of the first signatories on the network and a key proponent of the Nakamoto upgrade and sBTC.
With this integration, BitGo customers can now make their bitcoin productive by using sBTC, a decentralised, programmable bitcoin asset that maintains the security of bitcoin while enabling DeFi applications, tokenised assets, and smart contracts. By the end of the month, institutions will be able to seamlessly convert between BTC and sBTC across Bitcoin’s Layer 1 and Layer 2 networks, opening the door to new financial products built on top of Bitcoin.
Why sBTC matters for Bitcoin DeFi Adoption
The launch of sBTC represents a pivotal moment in the evolution of Bitcoin’s utility. While Bitcoin has long been hailed as a “store of value,” its role in decentralized finance has been limited—until now. By integrating sBTC, BitGo enables institutions to make their Bitcoin productive through programmable, decentralized applications.
But what exactly is sBTC, and why should you care? Simply put, sBTC is a 1:1 fully Bitcoin-backed asset that operates on Stacks’ layer-2 network while leveraging Bitcoin’s unparalleled security. Unlike other wrapped tokens, sBTC eliminates the need for centralized custodians, relying instead on smart contracts and an open network of validators. This ensures that all transactions settle directly on Bitcoin’s blockchain, benefiting from its robust security model.
Key Features of sBTC
- Decentralization: No single entity controls sBTC.
- Security: Transactions benefit from Bitcoin’s full security budget.
- Interoperability: Enables seamless conversion between BTC and sBTC across layer-1 and layer-2 networks.
- Programmability: Opens doors to innovative DeFi products and tokenized assets.
With these features, sBTC addresses a critical gap in the market: enabling institutions to participate in Bitcoin DeFi securely and efficiently.
How sBTC Works: Bridging Bitcoin and DeFi
1. Trustless Conversion Between BTC and sBTC
Users can deposit BTC to mint sBTC and vice versa.
Transactions are secured by Bitcoin’s blockchain, ensuring no counterparty risk.
2. Smart Contracts on Bitcoin
Stacks, the leading Bitcoin Layer 2, enables smart contracts and dApps while using Bitcoin as a base layer.
Developers can now build DeFi protocols, NFT marketplaces, and tokenized assets with sBTC.
3. Institutional Adoption by Major Players
Jump Crypto, UTXO Management, SNZ, and Asymmetric Research are already leveraging sBTC for DeFi strategies.
BitGo’s support also includes integration with SIP-010, the fungible token standard for Stacks, enabling future interoperability with other Stacks assets.
The Growing Demand for Bitcoin DeFi Solutions
Over the past year, Bitcoin DeFi adoption has surged dramatically. According to recent data, Bitcoin’s total value locked (TVL) in DeFi applications grew more than 20x, reaching 10–20 billion in 2025 as institutional interest continues to rise.
So, what’s driving this explosive growth? The answer lies in the increasing demand for programmable Bitcoin assets like sBTC. Institutions such as Jump Crypto, UTXO Management, SNZ, and Asymmetric Research are already leveraging sBTC to access decentralized lending, yield farming, and other DeFi protocols. These early adopters highlight the potential of Bitcoin-backed assets to reshape the global financial system.
How BitGo is Revolutionizing Digital Asset Custody
As one of the pioneers in the digital asset space, BitGo has consistently pushed boundaries since its founding in 2013. From launching Wrapped Bitcoin (WBTC) in 2018 to supporting the Nakamoto upgrade and sBTC, BitGo has demonstrated its commitment to advancing Bitcoin DeFi solutions.
Today, BitGo processes over 48 billion in staked assets. Its integration of sBTC further solidifies its position as the leading infrastructure provider for digital asset custody and Bitcoin-backed assets.
“BitGo has long believed in the promise of Bitcoin beyond just being a store of value,” said Abishek Singh, Product Manager at BitGo. “Our integration of sBTC marks a pivotal step toward expanding Bitcoin’s utility in decentralized finance.”
Unlocking New Opportunities with SIP-010 Integration
In addition to supporting sBTC, BitGo has integrated SIP-010, the fungible token standard for Stacks. This move paves the way for future support of other Stacks assets, enhancing interoperability within the Stacks ecosystem.
For developers and institutions, this means greater flexibility and access to a broader range of Bitcoin-backed assets. Whether it’s creating NFTs, launching decentralized exchanges, or building innovative DeFi protocols, the possibilities are virtually limitless.
Why should you care about Bitcoin DeFi?
If you’re wondering how Bitcoin DeFi impacts your investment strategy, consider this: Bitcoin holds over $1 trillion in passive capital. Imagine unlocking even a fraction of that for use in decentralized applications and tokenized assets. That’s precisely what sBTC aims to achieve.
Here are some questions to reflect on:
- Are you maximizing the potential of your Bitcoin holdings?
- How can Bitcoin-backed assets enhance your portfolio’s diversification?
- What role do you see Bitcoin DeFi playing in the future of finance?
By addressing these questions, you’ll gain a deeper understanding of why Bitcoin DeFi is more than just a trend—it’s a paradigm shift.
The Future of Bitcoin DeFi with sBTC
With BitGo’s institutional backing, sBTC is set to accelerate Bitcoin DeFi adoption. Key trends to watch:
✅ More Bitcoin-Powered dApps – Expect growth in lending protocols, decentralized exchanges (DEXs), and yield farming using sBTC.
✅ Institutional Demand for Yield – As Bitcoin DeFi TVL grows, institutions will seek staking, lending, and liquidity mining opportunities.
✅ Regulatory Clarity – With SEC-qualified projects like Stacks, Bitcoin Layer 2 solutions are gaining legitimacy.
FAQs About sBTC and BitGo’s Integration
1. What is sBTC?
sBTC is a 1:1 Bitcoin-backed asset that enables programmable Bitcoin on Stacks, Bitcoin’s leading Layer 2. Unlike WBTC, it is fully decentralized and settles on Bitcoin’s blockchain.
2. How Does BitGo Support sBTC?
BitGo provides institutional custody and infrastructure for sBTC, allowing seamless BTC-to-sBTC conversions and participation in Bitcoin DeFi.
3. Why is sBTC Better Than WBTC?
No centralized custodian – sBTC is secured by smart contracts and validators.
Bitcoin settlement – All transactions are irreversible on Bitcoin.
Supports DeFi – Enables yield farming, lending, and NFTs on Bitcoin.
4. When Will sBTC Withdrawals Be Available?
BitGo plans to enable sBTC withdrawals by the end of April 2025, allowing full BTC ↔ sBTC conversions.
5. What Institutions Are Using sBTC?
Major players like Jump Crypto, UTXO Management, and Asymmetric Research are already integrating sBTC into their DeFi strategies.
Conclusion: The Next Era of Bitcoin Utility
BitGo’s integration of sBTC marks a major milestone in Bitcoin’s evolution from a store of value to a productive asset. With institutional-grade custody, decentralized security, and growing DeFi adoption, sBTC is poised to unlock Bitcoin’s $1T+ in dormant capital.
Are you ready to explore Bitcoin DeFi with sBTC? Join the movement and discover how BitGo’s infrastructure can help you maximize your Bitcoin holdings.
