Bitcoin's growing layer 2 ecosystem has gained a boost with the integration of Stacks into institutional digital asset provider Haruko's framework. The move will make it easier for institutions to learn about Bitcoin assets and DeFi products, which can be traded at a scalable L2 level in Stacks.
Heaps It is one of the pioneering use cases in developing Bitcoin's second layer with the goal of unlocking $1 trillion of idle capital contained in its decentralized protocol. Over the past 12 months, Stacks has seen a slew of decentralized applications and protocols launched on L2, taking Bitcoin DeFi from an idea to a practical reality.
Institutional-grade DeFi on demand
While institutions are no stranger to Bitcoin, thanks in large part to an ETF endorsement that gave Wall Street firms exposure to the digital asset, they have been largely limited to holding Bitcoin on their balance sheets. The prospect of decentralized finance on Bitcoin rails has the potential to expand this capability to a wide range of use cases with the exciting proposition of real returns through services such as lending and issuing stablecoins.
The relative newness of Bitcoin L2s, coupled with the newness with which institutions have entered the cryptocurrency industry, means that the vast majority of financial companies have no experience in this area. Enters Harukowhich specializes in helping organizations master the emerging Bitcoin L2 landscape.
As Shamil Malik, CEO of Haruko, explains, “By integrating Stacks’ advanced Bitcoin layer, we can provide our customers with greater flexibility, security and efficiency in managing their digital asset portfolios. This represents a significant milestone in our mission to deliver cutting-edge digital asset management solutions.” Institutional.
Onchain asset management
Thanks to Haruko's Stacks integration, users of its digital asset platform will be able to track and manage their investments in STX as well as other tokens and coins on L2. This will give institutions, including hedge funds, the ability to trade, manage risk and create reports detailing their holdings of STX. This way, investors can access decentralized financial services through a centralized platform while maintaining full compliance.
The integration means that Haruko customers will be able to manage all their Bitcoin investments in one place and easily track their on-chain activities. Both fungible and non-fungible tokens can be managed, with the Haruko platform making it easy to visualize on-chain transfers and track digital wallets.
Stacks is at the forefront of Bitcoin's multi-billion dollar scaling scene, with L2 emerging as one of the most well-equipped networks to host this new wave of economic activity. The upcoming upgrade to the Stacks network, dubbed by Nakamoto, will provide greater throughput, security, and support for lower fees for high-volume decentralized applications.
While institutional investors have been largely limited to BTC and ETH so far, given the SEC's approval of these assets, more venture funds have begun to explore DeFi. Stacks has the regulatory green light to host this type of activity, having ensured compliance is maintained from day one. This includes ensuring that the STX token sale is approved by the SEC for issuance to accredited investors.
STX code is Up to 2x From the beginning of the year to date, the rise in the price of Bitcoin has pushed up the assets associated with it while keeping the bull market going for several years. Last month, it was open Grayscale has launched two new funds, one of which will invest exclusively in STX.
This article was written by FM Contributors at www.financemagnates.com.