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Starknet Pioneers Bitcoin Financialization with STRK Token Incentives
Starknet, the Ethereum layer-2 network, has officially integrated Bitcoin into its ecosystem, allowing the cryptocurrency to secure the network and unlock new DeFi possibilities, according to a recent press release.
Bitcoin Staking Comes to Starknet
For the first time, Starknet users can participate in transaction validation by delegating Bitcoin to the network, earning rewards in the platform’s native STRK token. Previously, staking was limited to STRK alone. StarkWare, the network’s developer, emphasized that users retain full custody of their Bitcoin while staking, highlighting that this approach maintains security without compromise.
The network is also collaborating with RE7, a London-based investment firm, which is building a Bitcoin-denominated yield product on Starknet. Additionally, the Starknet Foundation plans to deploy 100 million STRK to incentivize Bitcoin-related activity, further strengthening the asset’s integration.
Bridging Bitcoin and DeFi
StarkWare CEO and co-founder Eli Ben-Sasson described Bitcoin as “pristine capital” whose use in decentralized finance has been limited due to centralized exchanges offering scale, convenience, and low costs. With Bitcoin staking on Starknet, he envisions the network as the financialization and execution layer for Bitcoin, positioning it for a winner-takes-most scenario in the growing Bitcoin DeFi space.
Starknet’s Zero-Knowledge Edge
Leveraging a zero-knowledge proof system developed by Ben-Sasson in 2018, Starknet combines privacy with scalable blockchain infrastructure. While Ethereum served as the initial launchpad, Ben-Sasson confirmed that 2025 and 2026 will focus on optimizing Starknet for Bitcoin, aiming to expand programmability and utility for the world’s largest cryptocurrency.
Market Context
STRK, Starknet’s native token, has a market capitalization of $498 million, though its price has fallen 74% over the past year. Despite the dip, the platform continues to attract attention as it pioneers a Bitcoin-integrated layer-2 ecosystem, blending Ethereum’s technological foundations with Bitcoin’s financial dominance.
