Beyond ‘Digital Gold’: Making Bitcoin a Productive Asset

While mainstream attention remains fixed on Bitcoin’s price, a significant evolution is happening behind the scenes. The conversation is shifting from simply holding Bitcoin as “digital gold” to actively using it. The challenge has been to transform the world’s original cryptocurrency into a productive asset that can power a new generation of decentralized finance (DeFi).

Starknet, a leading Ethereum scaling solution, and the crypto investment firm Re7 are now providing a robust answer. Through a landmark collaboration, they are introducing a suite of tools and products designed to put Bitcoin to work, heralding a new chapter for Bitcoin finance (BTCFi).

Three Pillars of the New Bitcoin Ecosystem

This initiative is built on three pivotal developments converging on the Starknet network. Together, they create a comprehensive ecosystem for earning yield on Bitcoin securely and efficiently.

1. Re7 Launches Institutional-Grade Bitcoin Yield

The cornerstone of this announcement is Re7’s new Bitcoin-denominated yield strategy. As a regulated firm managing over $1 billion in assets with a team from institutions like BlackRock and Goldman Sachs, Re7 is the first major institutional player to launch a structured Bitcoin product on Starknet.

The strategy moves beyond passive holding by actively generating returns in BTC. It combines a conservative off-chain derivatives approach to capture volatility with on-chain yield opportunities, including staking on Starknet. This creates a powerful feedback loop where earning yield from Bitcoin also helps secure a decentralized network. Even before its official launch, the strategy has secured commitments of nearly 1,000 BTC, signaling strong institutional appetite.

Crucially, access isn’t limited to large players. Re7 is offering two participation paths: a regulated fund for institutions and family offices, and a tokenized version that makes the same strategy accessible to a broader audience without traditional financial barriers.

2. Trustless Bitcoin Staking is Now Live

Re7’s innovative product is powered by a foundational new capability on Starknet: trustless Bitcoin staking. As of today, staking rewards for Bitcoin on the network are active. This system is the first of its kind on any Layer 2, allowing Bitcoin to be staked directly from a user’s wallet without complex wrapping solutions or handing over custody to a third party.

This is a significant breakthrough for long-term Bitcoin holders who prioritize self-custody. They can now put their idle assets to work to earn real yield while their Bitcoin simultaneously helps secure a decentralized public good.

3. The ‘BTCFi Season’ Incentive Program

To accelerate adoption, the Starknet Foundation is launching the “BTCFi Season,” a network-wide incentive program fueled by 100 million STRK tokens. The initiative is designed to make Starknet the most efficient and cost-effective platform to borrow against, lend, and deploy Bitcoin.

Users can borrow stablecoins against their BTC collateral, deploy that capital into yield-generating strategies like Re7’s tokenized fund, and use the profits to accumulate more Bitcoin. Protocols such as Ekubo, Vesu, and Braavos are already integrating these incentives into a sustainable, long-term framework to enhance the user experience.

Security Built on Verifiable Proof

Underpinning this entire ecosystem is Starknet’s commitment to verifiable security. Unlike platforms that rely on opaque practices, all transactions on Starknet are backed by zk-STARK proofs. This advanced cryptographic technology is post-quantum secure and requires no trusted setup, creating a system built on mathematical certainty rather than promises. This allows anyone to independently verify the integrity of the network.

The Vision: Starknet as Bitcoin’s Settlement Layer

These developments represent a fundamental shift in Bitcoin’s utility. The long-term vision is for Starknet to serve as a scalable settlement layer for Bitcoin, transforming it from a passive store of value into a global transactional asset. The era of idle Bitcoin is ending, and its new role as a productive engine for a decentralized future is just beginning.