The layer-2 ecosystem for Bitcoin is on the rise, attracting institutional interest in BTC-based yields. In response, Hex Trust has introduced Stacks and sBTC into its offerings.
The decentralized finance (DeFi) landscape surrounding Bitcoin (BTC) is experiencing notable growth, catching the eye of numerous institutions. On Thursday, April 10, Hex Trust, a digital asset custodian, expanded its portfolio by including Stacks (STX) and sBTC. This enhancement allows investors to tap into the burgeoning Bitcoin layer-2 ecosystem.
Through sBTC, which operates on the Stacks Bitcoin layer-2 network, investors can earn staking yields expressed in Bitcoin. Giorgia Pellizzari, Head of Custody at Hex Trust, emphasized that institutions will gain from a regulated pathway to participate in Bitcoin DeFi.
“Hex Trust’s support for STX and sBTC is in line with our mission to provide institutional clients with secure, compliant access to the evolving utility of Bitcoin,” Giorgia Pellizzari, Hex Trust
Hex Trust focuses on Bitcoin DeFi growth in Asia
This move aligns with the increasing demand for Bitcoin in Asia and the UAE—regions that are pivotal to Hex Trust’s strategy. Kyle Ellicott, Executive Director at the Stacks Asia Foundation, noted that Hex Trust’s integration will enhance access to Bitcoin DeFi opportunities.
“Hex Trust’s expanded support bolsters the infrastructure for Bitcoin DeFi both in Asia and worldwide. Their adoption of sBTC and STX highlights the maturation of the ecosystem surrounding Bitcoin’s programmable future,” Kyle Ellicott, Stacks
For institutions, directly holding cryptocurrency can present challenges due to issues of security and regulatory compliance. Consequently, many opt for exchange-traded funds or custodial services like Hex Trust to gain exposure to cryptocurrency assets.
sBTC yields are generated through DeFi protocols, where it serves purposes such as lending and yield farming. Although Bitcoin itself does not offer staking rewards, the yields are expressed in Bitcoin terms. Stacks and sBTC are integral components of a rapidly developing ecosystem of Bitcoin DeFi protocols that leverage Bitcoin’s decentralization while providing enhanced functionality beyond the base chain.