Starknet Launches Bitcoin Staking With 100M STRK Incentives On Ethereum Layer-2

Starknet, an Ethereum layer-2 network utilizing zero-knowledge proofs, has launched native Bitcoin staking on its mainnet, allowing BTC holders to stake wrapped Bitcoin assets without relinquishing custody and earn rewards in the native STRK token. This development integrates Bitcoin into Starknet's security model, enabling BTC holders to participate in network consensus and capitalize on new yield opportunities, marking a shift from Bitcoin's traditional role as idle digital gold to an active DeFi asset. To accelerate adoption, the Starknet Foundation has committed a 100 million STRK incentive program aimed at boosting BTC liquidity, lending, and stablecoin borrowing, with a goal to make Starknet the most cost-efficient platform for borrowing against Bitcoin. The network has partnered with London-based Re7 Labs, which is launching a Bitcoin Institutional Yield Fund on Starknet, offering both institutional and retail investors access to on-chain and off-chain BTC yield strategies through tokenized products like MidasRWA. Additionally, Starknet is enhancing accessibility through integrations with wallets and bridges, and Re7 has introduced an Automated Liquidity Market Maker to facilitate efficient capital movement across BTC, ETH, STRK, and stablecoins. StarkWare's CEO highlighted that this initiative aims to unlock Bitcoin's potential within DeFi, positioning Starknet as a premier financialization and execution layer for Bitcoin.