BitGo Launches Institutional Support for sBTC, Expanding Bitcoin DeFi Accessibility

In this post: 

• BitGo now supports sBTC, a 1:1 Bitcoin‑backed token on the Stacks layer‑2 network. 
• BitGo is allowing institutions to deploy BTC into DeFi while maintaining Bitcoin’s base‑layer security.
• Withdrawal of sBTC between Bitcoin’s layer‑1 and layer‑2 is slated for late April.
  

BitGo, a digital‑asset custody and infrastructure provider, announced today that it has integrated sBTC, Stacks’ 1:1 programmable Bitcoin‑backed token, into its institutional offering. The move is intended to open the door for more institutional participation in decentralized finance.

Through this integration, BitGo clients will be able to use sBTC to put their Bitcoin to work in DeFi applications without giving up Bitcoin’s security. sBTC runs on Stacks, a layer‑2 network that brings smart‑contract capabilities to Bitcoin. 

Withdrawal functionality for sBTC is set to launch at the end of April, allowing institutions to convert between BTC and sBTC across both Bitcoin’s layer‑1 and layer‑2 networks.

BitGo first helped pioneer wrapped Bitcoin in 2018 as the primary backer and creator of WBTC. 

Recognizing a growing demand for decentralized solutions, the firm views sBTC as the next step. Rather than relying on a single custodian, sBTC is governed by smart contracts and a distributed network of validators. All sBTC transactions settle on Bitcoin with 100% finality, drawing on Bitcoin’s full security budget.

Bitcoin’s total value locked (TVL)  in DeFi has surged more than 20 times over the past year, reaching $6.5 billion by the end of 2024.

Analysts predict that figure could rise to between $10 billion and $20 billion in 2025 as institutional adoption accelerates.

BitGo’s $3 trillion volume and $48 billion in staked assets unlock institutional Bitcoin use.

“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 is the leading Bitcoin layer‑2 platform, designed to scale Bitcoin and enable smart contracts, decentralized applications, and NFTs, all of which are secured by Bitcoin.

Its Nakamoto release went live on October 29, 2024, boosting transaction speed and irreversibility, and sBTC officially launched on December 17, 2024. Since its mainnet debut in 2021, Stacks has drawn more than 30 contributing organizations, including the Stacks Foundation, developer tooling firms, and research groups.

Demand for sBTC is already rising among major players such as Jump Crypto, UTXO Management, SNZ, and Asymmetric Research. In addition to sBTC, BitGo’s integration supports SIP‑010, the fungible token standard for Stacks, laying the groundwork for custody of other Stacks assets in the future.