The Starknet Layer 2 (L2) network has officially introduced native Bitcoin staking and established a massive $100 million STRK fund to significantly boost the BTCFi ecosystem. This initiative positions Starknet at the forefront of digital gold adoption by allowing Bitcoin holders to earn rewards and enhance the network's decentralization.
How Bitcoin Staking Works
This launch represents a breakthrough as Starknet is the first rollup solution to offer a native income source for Bitcoin without requiring holders to surrender their underlying assets.
- Participation: Users can delegate tokenized versions of Bitcoin, such as WBTC, tBTC, Liquid Bitcoin, and SolvBTC, alongside the network's native STRK token. This system was approved via an online community vote.
- Security: The staking mechanism leverages zk-STARK cryptography, a form of zero-knowledge proof technology known for its strong post-quantum protection.
- Vision: StarkWare CEO Eli Ben-Sasson highlighted the philosophy: “Bitcoin is the best form of collateral.” The goal is to allow users to borrow against their BTC and invest the proceeds while simultaneously contributing to network security.
Institutional Growth and Accessibility
The initiative includes a major push to attract institutional capital and expand user accessibility:
- Institutional Fund: In October, Starknet will launch the Bitcoin Institutional Yield Fund through Re7 Capital, a firm that manages over $1 billion. The fund will target institutional investors but will also be made accessible to retail users via a tokenized version on MidasRWA.
- Fund Strategy: According to Re7 founder Evgeny Gokhberg, the fund will aim for sustainable Bitcoin growth using a combination of derivatives, DeFi strategies, and Starknet staking.
- Ecosystem Expansion: Starknet has already enhanced accessibility via integrations with XverseApp, Hyperlane, Atomiq Labs, and Garden Finance, with future integrations planned for LayerZero, BitGo, and Stargate Finance.
This development reinforces Starknet’s commitment to innovation despite a brief network outage in early September, showcasing its dedication to combining reliability with cutting-edge earning strategies for BTC holders.
September 2025, Cryptoniteuae