Originally published on: October 29, 2024
Hex Trust, a licensed digital asset services provider, has joined forces with the Stacks Asia Foundation to tap into the $180 billion market potential within the Bitcoin ecosystem.
This strategic partnership will see the custody platform supporting the Stacks layer and associated digital assets, while also paving the way for future DeFi applications on-ramps.
According to Kyle Ellicott, investor relations lead at Stacks, the collaboration highlights a surge in institutional interest and a maturing landscape surrounding Bitcoin-based DeFi. Ellicott emphasized the increasing demand in Asia for Bitcoin ecosystem products as indicated by Hex Trust’s involvement.
Calvin Shen, the chief commercial officer at Hex Trust, expressed excitement over enhancing the financial utility of Bitcoin for institutional clients through this partnership.
The integration aims to boost utility within the Bitcoin network, a concept known as Bitcoin DeFi or BTCFi. Notably, the initial integration will introduce support for SIP-010, the fungible token standard on Stacks, facilitating seamless tracking and transfer of tokens.
Interest in expanding DeFi capabilities on the Bitcoin network has been mounting since the 2024 Bitcoin halving, fuelled by initiatives like the Runes protocol, the first fungible token standard on the Bitcoin blockchain.
Institutional crypto demand in Asian markets has been on an upward trajectory, growing exponentially each year, according to Stacks’ Ellicott. The successful partnerships secured across the continent reflect the rising institutional interest in services tailored for this segment, he added.
In a bid to enhance Bitcoin’s utility, projects like Hermetica have introduced innovations such as USDh, the first Bitcoin-backed synthetic dollar offering a 25% yield for investors. CEO and founder of Hermetica, Jakob Schillinger, sees Bitcoin DeFi as the next big opportunity in the crypto space, predicting its potential to surpass Ethereum DeFi in the next 5 years.
As the market continues to evolve, with advancements like the launch of a Bitcoin-based token offering staking yield for holders by Binance Labs and Tim Draper-backed Zest Protocol, the future looks promising for Bitcoin DeFi.
With a growing emphasis on institutional engagement and technological advancements, the collaboration between Hex Trust and Stacks Asia sets the stage for a transformative journey within the Bitcoin DeFi landscape.
