Stack Asia Partners with HEX Trust on $180B Bitcoin DeFi Opportunity
Hex Trust, a fully licensed digital asset service provider, has partnered with Stax Asia Foundation to capitalize on the $180 billion market opportunity surrounding the Bitcoin ecosystem.
As part of the partnership, the security platform will gain support for the stack layer and all related digital assets and implement future on-ramps for decentralized finance (DeFi) applications.
The partnership reflects growing institutional interest and a growing industry around Bitcoin-based DeFi, according to Kyle Ellicott, head of investor relations at Stax. He told Cointelegraph.
Ellicott told Cointelegraph that the introduction of HexTrust for Bitcoin ecosystem products “speaks to the increasing demand of customers in Asia”.
Hex Trust Chief Commercial Officer Calvin Shen writes.
Hex Trust has partnered with Stax Asia. Source: Stack
Similar integrations could add more resources to the Bitcoin network in a growing paradigm known as Bitcoin DeFi or BTCFi. In this case, one of the first integrations will be adding support for SIP-010, the standard for Funnel Tokens on Stacks – easily traceable and transferable tokens.
Interest in building DeFi capacity on the Bitcoin network has been growing since the 2024 Bitcoin halving, which introduced the Runes protocol – the first level of cryptography on the Bitcoin blockchain.
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Institutional crypto demand is increasing in Asia.
Institutional crypto interest is on the rise in Asian markets, “growing at a significant rate every year,” according to Stacks' Ellicott.
Growing institutional demand was part of Stax's success for service providers looking for institutional deals across the continent, Ellicott added. He also explained.
“Asian markets have been a base for crypto since its inception, and institutional interest is increasing every year. The rise of the Bitcoin ecosystem has seen much of its growth in Asia…”
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Several other projects are building additional resources around Bitcoin, including Hermetica, which unveiled the first Bitcoin-backed synthetic dollar, USDh, with a 25% yield to investors.
Hermetica is a stack native Bitcoin DeFi protocol. According to the company's CEO and founder, Jacob Schillinger, Bitcoin DeFi could be the next big opportunity in crypto.
“We believe that Bitcoin DeFi will match and surpass Ethereum DeFi in the next 5 years,” Schillinger told Cointelegraph.
“We are seeing months where the average transaction volume for Ethereum and Solana NFTs is higher than the combined volumes. More than $1 [trillion] With hidden BTC capital, Bitcoin DeFi is primed for explosive growth.
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