Stacks, a prominent Bitcoin Layer 2 solution, is set to amplify its reach by leveraging the Wormhole NTT (Native Token Transfers) standard. This strategic move aims to broaden the multichain capabilities of sBTC and STX, thereby enhancing the flow of native Bitcoin liquidity across decentralized finance (DeFi) ecosystems, according to Wormhole.
By market capitalization, developer activity, and BTC Total Value Locked (TVL), Stacks stands as a leading Bitcoin Layer 2 network. It has been instrumental in unlocking over $1 trillion in passive Bitcoin capital, making BTC a fully programmable asset. With backing from institutional validators like BitGo and Hex Trust, Stacks offers Bitcoin-denominated yields through its Proof of Transfer consensus mechanism.
The network’s recent Nakamoto upgrade, activated in October 2024, introduced near-instant transaction finality while maintaining Bitcoin’s security. The subsequent launch of sBTC in December 2024 enabled developers to integrate native BTC into smart contracts and DeFi applications, enhancing the utility of Bitcoin in the DeFi space.
Wormhole’s NTT standard facilitates the seamless transfer of native tokens across different blockchains while preserving their intrinsic properties. The Guardian Network secures these transfers, ensuring high security standards. NTT’s reliability is underscored by its adoption by leading protocols like Sky’s USDS and Lido’s wstETH.
For Stacks, adopting NTT means opening up Bitcoin liquidity to major DeFi platforms and allowing assets from other chains to access Stacks’ native Bitcoin applications. This integration ensures that Stacks retains full control over its tokens’ behavior, offering unparalleled flexibility and compatibility with various token standards.
The deployment of sBTC and STX on platforms like Solana and Sui will utilize NTT’s burn-and-mint mode, creating a unified supply across supported chains without the need for wrapped tokens. This approach eliminates liquidity fragmentation, enabling users to engage in Bitcoin-native DeFi across multiple chains while benefiting from Stacks’ inherent security and decentralization.
As Bitcoin’s $2 trillion market cap remains largely untapped in DeFi, sBTC emerges as a crucial asset. It offers secure, decentralized Bitcoin liquidity, aligning with Bitcoin’s core principles while meeting DeFi’s demands. This integration is poised to usher in a new era of decentralized finance, bridging Bitcoin’s security with multichain DeFi innovation.
Wormhole stands as a leading interoperability platform, facilitating multichain applications and bridges at scale. Trusted by teams like Circle and Uniswap, Wormhole has enabled the transfer of over $60 billion through more than 1 billion cross-chain messages. Its infrastructure is a cornerstone for projects aiming to expand across blockchain networks, encompassing use cases in DeFi, NFTs, and governance.
