Stacks’ SBTC gains traction as early adopters with UTXO, SNZ and Jump Crypto. With this adoption, demand for SBTC tripled in capacity within 24 hours. SBTC will unlock Bitcoin Defi and withdrawals are scheduled to begin in March 2025.
A new wave of institutional adoption is sweeping the Bitcoin ecosystem as Stack, a well-known Bitcoin Layer 2 solution, celebrates the rapid incorporation of SBTC, a decentralized Bitcoin support asset.
Leading fees among early SBTC adopters are industry heavyweight UTXO management, SNZ and Jump Crypto, signaling strong confidence in SBTC’s potential to unlock the distributed financial (DEFI) utilities of Bitcoin holders around the world.
UTXO Management, a key player with liquid funds that deploy the capital of venture armback top Bitcoin companies and their liquid funds 210k in the public and private markets, is adopting SBTC as part of their Bitcoin strategy.
Jump Crypto, a division of the renowned Jump Trading Group, brings expertise to the table as a quantitative trading company and infrastructure builder. Saurabh Sharma of Jump Trading Notes stated, “SBTC promotes a more dynamic and interconnected financial environment.”
SNZ, an investment company from crypto, which has made its mark in Singapore, Singapore and the US, continues its legacy of supporting Bitcoin innovation. It was an early supporter of Asian Stack and other public blockchains.
Other notable participants include CMS Holdings, an active investor in Bitcoin scaling ventures. Rootstocklabs, the pioneer behind Lotstock Sidechain. Sypher Capital focuses on the production of native Bitcoin yields. Asymmetric research is a security partner for major protocols such as Solana and Wormhole.
Together, these institutions highlight the broad appeal of SBTC across the crypto ecosystem, from trading and investment to technological development and security.
Increased enthusiasm for SBTC
Launched on Stacks Mainnet in December 2024, SBTC quickly records its position as a game changer in tokenized Bitcoin Landscapes, enabling programmable smart contracts and transactions protected by Bitcoin’s robust infrastructure.
The enthusiasm for the SBTC was clear from the start, with its initial capacity cap being filled by a roster of influential depositors, prompting a second cap rise that doubled on February 25th.
Surprisingly, this expanded capacity will be fully subscribed within 24 hours, reflecting a surge in demand from institutions, wealth managers, builders and retail investors.
Among the outstanding SBTC use cases driving this momentum is a burgeoning application that has already achieved nearly 40% of SBTC within the protocol, showing the immediate ease of use and appeal of assets.
For Bitcoin enthusiasts, SBTC represents the bridge between the unparalleled security of cryptocurrencies and the dynamic possibilities of Defi.
Unlike traditional staking and locking of Bitcoin at the base layer, SBTC activates capital by enabling a wide range of financial applications, from yield generation to lending and decentralized exchanges.
Alex Miller, CEO of Hiro, the developer-touring company for Stacks Ecosystem, highlighted the potential for SBTC transformation, which he says will provide inherent liquidity for developers to build and scale applications as SBTC adoption increases.
In particular, according to Coingecko data, the increase in SBTC is amid a widespread surge in the Bitcoin layer, with total value (TVL) skyrocketing over 460% over the past year, rising from around $500 million in 2024 to $2.8 billion by 2025.
This growth reflects the growing awareness among Bitcoin (BTC) holders that layer 2 solutions like stacks can enhance functionality without compromising the core principles of security and decentralization.
With tokenized Bitcoin assets currently accounting for 1.67% of BTC’s distribution supply, SBTC, the highest level since October 2022, is poised to play a central role in this evolving story.
Looking ahead, Stacks is preparing to deploy SBTC drawer functions in March 2025. This is a milestone that further enhances its usefulness. As a major Bitcoin Layer 2 by developer traction and market capitalization, the stack is driving the move to convert Bitcoin’s $1 trillion passive capital into fully programmable and productive assets.
With support from top staking providers, custodians, ecosystems such as Solana and Aptos, SBTC not only connects Bitcoin to defi, but also paves the way for a future where every road in crypto is back to Bitcoin.
