Starknet introduces bitcoin staking and yield product in BTCFi expansion

Starknet has launched what it describes as the first trustless Bitcoin staking mechanism on a Layer 2 network, allowing holders of wrapped BTC tokens — including WBTC, tBTC, and SolvBTC — to earn rewards and participate in network consensus without giving up custody of their assets. The initiative is backed by a 100 million STRK (~US$12 million) incentive program designed to make Starknet the leading venue for using Bitcoin as collateral in DeFi.

As part of this broader BTCFi push, Re7 Capital has announced plans to launch a new BTC-denominated yield product on Starknet in October. The strategy aims to generate returns directly in Bitcoin through a combination of off-chain derivatives trading, curated DeFi yield strategies, and BTC staking participation on Starknet. While built to institutional standards, the fund will also be available in tokenized format for broader accessibility.

The announcements mark a significant step in Starknet's ambition to become Bitcoin's primary execution layer, a roadmap it first outlined in June 2024.

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