BitGo launches support for Bitcoin L2 stack and sBTC

Digital asset services infrastructure provider BitGo has launched support for Bitcoin layer2 network Stacks and the new token level sBTC to enhance BTC functionality with stacking capabilities.

According to a press release sent to CryptoPotato, Bitgo will join the Stax network as a signatory to contribute to blockchain consensus and block production.

BitGo integrates support for stacks

The combination between BitGo and Stacks allows the former users to grow their Bitcoin holdings without lending their assets. Using Stacks'sBTC they can generate Bitcoin (BTC) rewards with their wallets.

sBTC is a decentralized 1:1 Bitcoin-backed asset created to enhance Bitcoin's programmability, and BitGo facilitates asset deposits and withdrawals from the stack. As a signer on the stack, BitGo enables the conversion between BTC and sBTC on Bitcoin's layer1 and layer2 networks.

Users who wish to create sBTC must deposit an equal amount of BTC into the Bitcoin blockchain script controlled by BitGo or other signatories. BitGo withdraws sBTC and moves it to the users' addresses. The infrastructure provider follows a similar process when users convert sBTC to BTC by initiating a pegout transaction and sending the extracted BTC to appropriate addresses.

Bitgo Senior Product Manager Daniel Du said: “Bitgo Stacks is excited to expand its smart contract capabilities and support decentralized applications for developers and institutions. We're proud to offer STX Controlled's qualified protection and stack, and we look forward to partnering with them in their continued growth.

Building on Bitcoin

The latest development comes as developers and leaders of the Bitcoin community seek to unlock the potential of the crypto network. With developers finding new ways to build on top of Bitcoin, the total value of the blockchain network has grown 7x to over $2.2 billion. BitGo believes that its participation as a stack signer will encourage Bitcoin layer2 developers to create more.

“This move underscores the critical role Bitcoin L2s will play in expanding the Bitcoin ecosystem and driving future innovation,” said Jonathan Sadlowe, General Partner at Gossamer Capital. blockchain environment.

Investors and institutions also want to take advantage of Bitcoin's potential. Several entities have increased their allocation of Bitcoin-based projects by launching accelerator programs focused on direct investments and Bitcoin-building groups.