StarkWare Bets Big on Bitcoin: Aims to Bridge Ethereum and BTC with Starknet

Blockchain Innovator Establishes Bitcoin Reserve, Advances Plans to Unify Crypto’s Biggest Networks

StarkWare, the powerhouse behind STARK proofs and a key contributor to Ethereum Layer 2 scaling solution Starknet, has unveiled a Strategic Bitcoin Reserve, reinforcing its commitment to BTC as both a store of value and a utility asset. The move signals an ambitious vision to unify Bitcoin and Ethereum, leveraging Starknet’s technology to bridge the two largest blockchain networks.

A Bold Move Toward Bitcoin Adoption

With a valuation of $8 billion, StarkWare has steadily expanded its Bitcoin research efforts, culminating in the decision to hold an undisclosed portion of its treasury in BTC. The company describes itself as a "Bitcoin-standard" firm, underscoring its belief that blockchain companies should hold Bitcoin as a fundamental asset.

“We put our money where our mouths are," StarkWare CEO Eli Ben-Sasson told The Block. "Every blockchain company should, and likely will, hold Bitcoin. Given our daily work on Bitcoin’s utility, it makes sense for our financial strategy to align with its long-term value.”

Ben-Sasson, who has been a vocal Bitcoin advocate since attending his first BTC conference in 2013, emphasized the dual role of Bitcoin—as both a store of value and an enabler of blockchain innovation.

Joining the Ranks of Bitcoin-Holding Giants

StarkWare is now part of an expanding roster of crypto firms maintaining Bitcoin reserves, joining the likes of Strategy, MARA, and Block. The announcement also follows President Donald Trump’s recent executive order, which established a U.S. Strategic Bitcoin Reserve from approximately 200,000 BTC ($18 billion) in government-held assets. The directive also tasks the Treasury and Commerce Departments with exploring budget-neutral strategies for expanding the nation’s Bitcoin holdings.

Starknet’s Expanding Bitcoin Integrations

Beyond its reserve strategy, StarkWare has introduced three major Bitcoin-related initiatives aimed at integrating BTC into Starknet’s ecosystem:

1. Bitcoin Wallet Integration: Xverse, a Bitcoin wallet supporting Ordinals, BRC-20 tokens, and Layer 2 solutions, is set to integrate with Starknet, allowing users to interact with Bitcoin assets on the network for the first time.
2. BTCFi Season: The Starknet Foundation is launching a yield-generating DeFi program for Bitcoin, enabling BTC holders to participate in lending, staking, and other financial applications on Starknet.
3. Lightning Network Payments: The Braavos wallet will now support one-click Bitcoin Lightning Network transactions, boosting transaction speed and efficiency for Bitcoin users on Starknet.

A Vision to Unify Bitcoin and Ethereum

StarkWare is laying the groundwork for Starknet to become one of the first Layer 2 solutions to settle on both Bitcoin and Ethereum, aiming to enhance scalability, liquidity, and user experience while maintaining blockchain security and decentralization.

Although Bitcoin is often viewed as “digital gold” rather than a transactional asset, StarkWare sees untapped potential, hindered by slow speeds, high fees, and security risks. To address these challenges, Starknet seeks to become Bitcoin’s execution layer, scaling BTC from 13 transactions per second to thousands, and enabling applications like staking, lending, and yield farming through its zero-knowledge STARK proofs—which offer quantum-resistant security and low-cost transactions.

Pushing for Bitcoin’s Evolution: OP_CAT and Bridge Solutions

StarkWare has been actively researching OP_CAT, a proposed Bitcoin soft fork that would enable trustless Bitcoin-to-Starknet bridges. OP_CAT is a scripting feature that could allow for native smart contracts and advanced Bitcoin functionality, though its implementation remains uncertain due to the need for broad technical and community consensus.

In the meantime, StarkWare is exploring two alternative Bitcoin bridge solutions:

• Federated Bridge: A group of co-signers would collectively manage locked Bitcoin and mint an equivalent amount of tokens on Starknet, ensuring lower fees and a smoother user experience. However, this model requires trust in signers.
• BitVM-Based Bridge: A trust-minimized alternative, this model removes the need for multisig governance by using cryptographic dispute resolution for greater security.

The Road Ahead for Starknet and Bitcoin

Looking forward, StarkWare is set to roll out additional Bitcoin-related products, incentives, and partnerships. The company plans to collaborate with wallet providers, researchers, and retail-focused initiatives to accelerate BTC adoption within the Starknet ecosystem.

By integrating Bitcoin into Layer 2 solutions and advancing bridge technologies, StarkWare is positioning itself at the forefront of the next evolution in blockchain interoperability, striving to make Bitcoin and Ethereum seamlessly connected in a unified decentralized ecosystem.