Starkware is committed to establishing a strategic Bitcoin reserve and increasing the BTC’s Treasury share as part of a broader push to integrate flagship cryptography into the StarkNet Layer 2 network.
Although it has not revealed the size of its holdings, CEO Eli Ben-Sasson said the company is set by example, believing that all blockchain companies will ultimately hold Bitcoin.
Finally, the $8 billion blockchain company has recently been increasingly focusing on Bitcoin research and development.
The move places Starkware alongside other crypto companies that have adopted Bitcoin as a financial asset. It also follows President Donald Trump’s executive order to establish a strategic Bitcoin reserve in the United States.
Bitcoin integration
As part of a broader Bitcoin strategy, Starkware is integrating Vicvers, a Bitcoin wallet that supports ordinal and runes, into StarkNet. This will allow Bitcoin assets to be used within the Layer 2 network for the first time.
The company will also begin the BTCFI season. This is an initiative by the Starknet Foundation that introduces Bitcoin holders into Defi applications such as lending and agriculture.
Additionally, the Braavos wallet supports payments on Lightning Network, enabling faster and more cost-effective Bitcoin transactions within StarkNet.
These developments support Starkware’s broader vision of making Starknet a vital execution layer for Bitcoin, addressing the challenges of scalability. The company argued that Bitcoin is widely viewed as digital gold, but its limited trading speeds and high fees limit the wide range of uses.
Bridging Bitcoin and Ethereum
Starkware also proposes OP_CAT, a proposed Bitcoin soft fork that could enable Starknet bridges from unreliable Bitcoin by enabling advanced scripting and programmable transactions.
Originally part of Bitcoin’s early design, the proposal remains a topic of discussion within the community due to security considerations.
In the meantime, Starkware is investigating alternative bridge models, including federated multisig systems that rely on a group of co-signers to protect Bitcoin, and BITVM-based solutions that use cryptographic dispute resolution mechanisms to minimize trust.
Starkware sees these innovations as part of a larger effort to not only unlock new financial applications, but also to make Bitcoin more than just a valuable store, while maintaining security and decentralization.
With additional Bitcoin integrations, partnerships and incentives expected in the coming months, Starkware aims to position StarkNet as a bridge between Bitcoin and Ethereum, aiming to promote liquidity and user adoption in both ecosystems.
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