The Bitcoin layer-2 landscape is rapidly evolving, catching the eye of institutional players seeking returns denominated in BTC. Responding to this demand, digital asset custodian Hex Trust has broadened its services, incorporating Stacks (STX) and its associated sBTC token. This strategic addition provides institutional investors with a regulated pathway to participate in Bitcoin’s burgeoning DeFi sector.
Through sBTC operating on the Stacks Bitcoin layer-2 network, clients can now generate yield paid out in Bitcoin. Giorgia Pellizzari, Head of Custody at Hex Trust, highlighted the significance of this move, stating it provides institutions secure and compliant entry into Bitcoin’s expanding utility within decentralized finance.
This expansion aligns with increasing crypto adoption in Asia and the UAE, key operational regions for Hex Trust. Kyle Ellicott of the Stacks Asia Foundation noted that Hex Trust’s involvement enhances the foundational support for Bitcoin DeFi, signaling a maturing ecosystem for Bitcoin’s programmability globally.
Directly managing digital assets presents security and compliance hurdles for many institutions. Consequently, custodians such as Hex Trust offer a vital service, enabling regulated exposure to crypto tokens without the complexities of direct ownership.
Yields from sBTC are sourced from various DeFi activities like lending and yield farming, crucially paid in Bitcoin terms—a feature not native to the base Bitcoin blockchain. Stacks and sBTC represent key components in the expanding universe of Bitcoin DeFi solutions, building advanced functionality upon Bitcoin’s secure foundation.