The Bitcoin Layer-2 ecosystem is experiencing significant growth, capturing the attention of institutional investors drawn to the potential for Bitcoin-denominated crypto yields. Capitalizing on this trend, digital asset custodian Hex Trust recently broadened its offerings to include Stacks (STX) and sBTC.
This integration opens doors for investors to potentially earn staking yields paid out in Bitcoin through sBTC, which operates on the Stacks network—a key Bitcoin L2 scaling solution. According to Giorgia Pellizzari, Head of Custody at Hex Trust, this initiative aims to furnish institutions with secure and compliant access to the expanding world of Bitcoin DeFi.
“Hex Trust’s support for STX and sBTC aligns with our mission to empower institutional clients with secure, compliant access to Bitcoin’s evolving utility,” stated Pellizzari.
The timing aligns with increasing Bitcoin interest in Asia and the UAE, regions where Hex Trust maintains a strong focus. Kyle Ellicott from the Stacks Asia Foundation commented on the move’s significance, suggesting that Hex Trust’s involvement bolsters the necessary infrastructure for Bitcoin DeFi development in Asia and beyond.
“Hex Trust’s expanded support strengthens the infrastructure for Bitcoin DeFi in Asia and globally. Their integration of sBTC and STX underscores the maturing ecosystem around Bitcoin’s programmable future,” remarked Ellicott.
Many institutions face security and regulatory obstacles when considering direct holdings of crypto assets. This often leads them to utilize regulated custodians like Hex Trust to gain exposure and navigate the complexities of the digital asset market safely.
The yields generated by sBTC originate from its application within DeFi protocols, such as lending and yield farming. Notably, these returns are denominated in Bitcoin, offering a novel way to generate BTC yields, something the base Bitcoin network does not inherently support. Stacks and sBTC represent a growing wave of innovation aiming to enhance Bitcoin’s utility by building functional layers atop its foundational security.