Institutional investors are flocking to Bitgo’s secure wallet solution as the Stacks-based DeFi ecosystem surges with liquidity, thanks in part to the integration of sBTC.
Stacks’ STX Surges Amid Institutional Adoption Hopes
Boost from BitGo Link Seen Enhancing Institutional Use
The Stacks-based DeFi ecosystem has witnessed a significant increase in liquidity, with stablecoin supply surging over 400% in the first quarter. The native cryptocurrency of the Stacks protocol, STX, has surged 56% in the past week, becoming the best-performing top 100 cryptocurrency by market value.
STX‘s price surge can be attributed to the recent integration of sBTC by BitGo, a digital asset custody and infrastructure provider. This move is expected to enhance institutional access to the Stacks ecosystem, expanding Bitcoin‘s utility in decentralized finance. The sBTC token allows holders to participate in Stacks‘ DeFi ecosystem while keeping the price pegged to their underlying bitcoin.
BitGo is a leading digital asset security company that provides institutional-grade wallet solutions for businesses and individuals.
Founded in 2013, the company offers multi-signature wallets, custody services, and trading platforms to securely manage cryptocurrencies.
With its headquarters in New York and offices globally, BitGo has established itself as a trusted player in the crypto industry.
The company is known for its robust security measures, including cold storage and insurance, which have earned it regulatory approval from institutions worldwide.
Key Benefits of sBTC Integration
The integration of sBTC has opened doors for institutions to tap into the new era of Bitcoin utility. With over $3 trillion in processed transactions and more than $48 billion in staked assets, BitGo is uniquely positioned to help institutions benefit from this development. The sBTC withdrawal facility, expected to be implemented on April 30, will allow institutions to move seamlessly between BTC and sBTC.
Improved Ecosystem Liquidity
Liquidity in the Stacks-based DeFi ecosystem has improved, with the total stablecoin supply surging over 400% in the first quarter. The protocol announced this development on X early Friday, pointing to an increase in institutional adoption. The total stablecoin supply was nearly $7 million, up from around $1 million in early January.
Stacks’ Role in the Ecosystem
STX plays several roles in the Stacks ecosystem, including enabling connection between the parent blockchain and Bitcoin, supporting smart-contract creation, and enabling network governance. It’s also used to pay transaction fees and plays a key role in the proof-of-transfer consensus mechanism that allows holders to earn BTC by locking their STX.
