BitGo Integrates sBTC, Boosting Bitcoin's DeFi Utility

BitGo, a prominent digital asset custody and infrastructure provider, has announced its integration of sBTC, a 1:1 fully programmable Bitcoin-backed asset developed by Stacks. This move is set to enhance institutional participation in decentralized finance (DeFi). BitGo has been a longstanding supporter of Stacks and was an early Signer on the Stacks network, as well as one of the first supporters of the Nakamoto upgrade and sBTC.

With this integration, BitGo clients can now leverage sBTC to make their Bitcoin more productive. sBTC is a 1:1 Bitcoin-backed asset that enhances Bitcoin’s functionality without compromising its security. The withdrawal functionality for sBTC is scheduled to launch at the end of the month, allowing institutions to convert between BTC and sBTC across Bitcoin’s layer 1 and layer 2 networks. This opens up new possibilities for applications, tokenized assets, and DeFi products.

BitGo’s support for sBTC is part of its recognition of the evolving landscape and the growing demand for more decentralized solutions. Unlike traditional wrapped Bitcoin, sBTC is maintained by smart contracts and an open, decentralized network of validators. All sBTC transactions settle on Bitcoin with 100% Bitcoin finality, benefiting from the full security budget of Bitcoin itself.

This development comes as Bitcoin enters a new era of utility and access. Over the past year, Bitcoin’s total value locked (TVL) in DeFi applications has grown significantly, reaching $6.5 billion by the end of 2024. Analysts project this figure to surpass $10–20 billion in 2025 as institutional adoption accelerates.

“BitGo has long believed in the promise of Bitcoin beyond just being a store of value. Our integration of sBTC marks a pivotal step toward expanding Bitcoin’s utility in decentralized finance,” said Abishek Singh, Product Manager at BitGo. “As one of the earliest supporters of Stacks and the Nakamoto release, we’re excited to bring institutional-grade custody and infrastructure to the Stacks ecosystem. With over $3 trillion in processed transactions and more than $48 billion in staked assets, BitGo is uniquely positioned to help institutions tap into this new era of Bitcoin utility. sBTC opens the door to programmable, decentralized financial products without compromising Bitcoin’s core principles—and we’re just getting started.”

Stacks, the leading Bitcoin layer 2, is designed to scale Bitcoin and bring smart contract capabilities to its ecosystem. As one of the most tenured projects in the space, Stacks has consistently driven innovation by enabling decentralized applications, non-fungible tokens (NFTs), and DeFi solutions—all secured by Bitcoin.

The integration of sBTC by BitGo comes amid growing demand from major players such as Jump Crypto, UTXO Management, SNZ, and Asymmetric Research. These institutions are driving adoption by leveraging sBTC’s functionality to participate in DeFi.

BitGo’s support also includes integration with SIP-010, the fungible token standard for Stacks. This opens up the possibility of support for other Stacks assets in the future, further expanding the ecosystem’s potential and interoperability within the Stacks network.