Starknet launches Bitcoin staking: a new era for BTCFi

11.09.2025

The Starknet network, built on Ethereum as a Layer-2 solution, has officially launched Bitcoin staking. Users can now delegate their digital assets to participate in transaction validation and receive rewards. The initiative became possible after the SNIP-31 proposal was approved in August, with 93.6% of community members voting in favor. Until now, only Starknet’s native token – STRK – could be staked. The new mechanism does not alter Bitcoin’s base blockchain, which operates under the Proof-of-Work algorithm. Starknet supports “wrapped” versions of BTC – WBTC, LBTC, tBTC, and SolvBTC – which mirror the value of the original coin. The list of supported assets is expected to expand over time. This staking function is positioned as the first native and sustainable BTC yield source among all Layer-2 networks. According to StarkWare co-founder and CEO Eli Ben-Sasson, combining Bitcoin’s security potential with decentralized network protection “unleashes the true power of the first cryptocurrency.” He emphasized that this integration strengthens both the Ethereum and Bitcoin ecosystems through technological synergy. Alongside the staking launch, the non-profit Starknet Foundation announced the allocation of 100 million STRK (around $12 million) to develop the BTCFi ecosystem. The funds will support Bitcoin-backed lending products and incentivize DeFi protocols operating with digital gold. Ben-Sasson noted that Bitcoin is “the best form of collateral,” already recognized by both corporate and institutional investors.