BTC Staking Comes to Starknet: 100M STRK Incentive and RE7 Capital BTC Yield Product to Boost Bitcoin Usability

Starknet has unveiled the BTCFi on Starknet initiative, introducing a bundled set of protocol-level enhancements designed to increase Bitcoin utility on Layer 2. The announcement outlines coordinated measures that target custody-preserving capital flows and developer incentives across the Starknet ecosystem.

The program includes a native BTC Staking mechanism enabling users to delegate BTC on Layer 2 while maintaining asset custody, with on-chain reward distribution governed by Starknet contracts. This feature aims to improve capital efficiency for Bitcoin holders interacting with Starknet-native DeFi primitives.

Complementing staking, the Starknet Foundation will allocate 100 million STRK to bootstrap activity, and RE7 Capital will offer an institutional-grade, BTC-denominated yield product leveraging tokenization. Together these initiatives position Starknet as a pragmatic execution layer for expanded Bitcoin financialization.