Starknet, the zero-knowledge proof layer-2 solution for Ethereum, has officially rolled out native Bitcoin staking on its mainnet, allowing BTC holders to participate in network consensus and earn rewards without relinquishing custody of their assets. This makes Starknet the first Layer-2 network to offer trustless BTC staking, enhancing Bitcoin's utility in decentralized finance (DeFi).
The rollout, confirmed on September 30, 2025, follows a September 15 upgrade and delivers on a roadmap first outlined in June 2024 and formally approved through governance in August. Wrapped Bitcoin assets such as WBTC, LBTC, tBTC, and SolvBTC can now be staked, contributing up to 25% of the network's staking power.
To accelerate adoption, the Starknet Foundation has introduced a 100 million STRK incentive program aimed at boosting BTC liquidity, stablecoin borrowing, and DeFi activity. This initiative is designed to make Starknet the cheapest place to borrow against Bitcoin, driving capital efficiency. Additionally, Starknet has partnered with Re7 Labs, a DeFi-focused investment firm with over $1 billion in assets under management, to launch a Bitcoin Institutional Yield Fund. Retail investors can access similar strategies through MidasRWA, a tokenized version of the fund.
StarkWare CEO Eli Ben-Sasson emphasized that Bitcoin is "pristine capital" and stated that Starknet is "perfectly aligned to make Starknet the financialization layer and the execution layer for Bitcoin." The network also announced integrations with LayerZero, BitGo, and Stargate to enhance cross-chain connectivity. Ben-Sasson highlighted that Starknet's main goal for 2025 and 2026 is to service Bitcoin optimally, leveraging zero-knowledge proofs introduced in 2018.
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