The Orange Envelope: Bitcoin Adoption Soars as BTCFi Gains Traction
May 29, 2025 • Reading Time: 6 minutes
Bitcoin’s market dominance is reaching new heights as institutions flood into the space, expanding treasury reserves and seeking low-risk, yield-generating strategies. BTCFi (Bitcoin DeFi) is emerging as a powerful force, offering holders new ways to activate their Bitcoin through yield funds, assets like sBTC, and staking mechanisms. Global adoption is accelerating: HK Asia Holdings became Greater China’s first publicly traded company to adopt a Bitcoin treasury, signaling a broader shift toward institutional acceptance in Asia.
Meanwhile, Bitcoin sidechains are surging, with VCs injecting $447 million into the sector in Q3 2024 alone. Q1 2025 continued this momentum, with corporate Bitcoin holdings reaching 688K BTC, representing 16.11% growth QoQ. New companies like GameStop and Semler Scientific joined the ranks, alongside giants like Strategy (formerly MicroStrategy), which now holds 528,185 BTC. This surge sets the stage for Stacks and sBTC to channel that liquidity. With sBTC withdrawals now live and the 5,000 sBTC cap closing in less than 3 hours, Stacks is emerging as the leading Bitcoin L2, driving new financial opportunities on Bitcoin’s base layer.
Strategic partnerships with SUI for seamless cross-chain integration, BitGo and Hex Trust for institutional-grade custody, Everest Ventures Group (EVG) and Aspen Digital for market penetration in Asia, and ADGM for regulatory clarity are primed to accelerate the path toward 21,000 BTC in sBTC TVL, reinforcing Stacks’ position in Bitcoin DeFi.
As institutions, high-net-worth individuals, and family offices seek to "awaken" their Bitcoin holdings, BTCFi is transforming capital flows into DeFi, redefining Bitcoin as more than just a passive asset. Let’s dive into the latest advancements in the space.
🔍 In Focus: Key Trends Shaping BTCFi in Asia
As Asia leads the charge in crypto regulation and adoption, Bitcoin L2 solutions are emerging as critical infrastructure for DeFi and institutional use. Below, we explore how key markets are driving innovation and setting the stage for the next wave of Bitcoin DeFi.
🇭🇰Asia’s Crypto Policy Shift – Hong Kong’s Comeback
Just a few years ago, Hong Kong’s crypto scene went quiet amid mainland China’s crackdown. Now, the city is staging a comeback with strong regulatory support. On April 7, Hong Kong’s Securities and Futures Commission (SFC) introduced guidelines for licensed crypto exchanges to offer staking services, provided they meet strict investor protection standards. This follows last year’s move to license retail trading and renewed Web3 commitments. SFC’s investment head, Christina Choi, affirmed the regulator’s support for Hong Kong’s Web3 journey.
This shift is re-establishing Hong Kong as a global crypto hub. Legislators are pushing for accelerated research into Bitcoin as a strategic reserve, signaling the city’s ambition to align with global digital asset developments. Local banks are now servicing crypto firms, and a stablecoin regulatory framework is underway to enhance market stability. By embracing clear rules instead of outright bans, Hong Kong is aiming to balance innovation with investor protection. All eyes are now on how these measures translate into market activity. With staking, trading, and tokenization initiatives underway, Hong Kong is positioning itself not just as compliant but as a true center for Web3 adoption, where investors can engage in crypto with confidence and oversight.
🚀 5,000 sBTC Cap Fills in 3 Hours
sBTC is moving fast. On March 31, sBTC Phase 2 withdrawals are now live back to Bitcoin L1. Withdrawals are currently capped at 150 BTC per day, with fewer than 20 BTC withdrawn so far, signaling strong holder confidence.
This increased flexibility, paired with Bitcoin’s recent market strength, has sparked rapid minting of sBTC. Stacks has now surpassed Rootstock in BTC Total Value Locked (TVL), solidifying its place as the fastest-growing Bitcoin L2 in 2025.
The next major milestone came on May 22, 2025, when the third deposit cap filled with an additional 2,000 BTC in just three hours. With over 5,000 BTC now secured, Stacks has become one of the largest Bitcoin Layer 2s—second only to Babylon. But the ambition doesn’t stop there. The Stacks Asia Foundation is partnering with Taptive, SNZ Capital, LunarCrush, and Coinage to pursue a bold new target: 21,000 BTC in sBTC TVL.
The broader implication of this momentum is profound: Bitcoin is evolving into an active asset, not just digital gold. By leveraging Bitcoin L2s like Stacks (and others like the Lightning Network), BTC can participate in smart contracts, decentralized lending, and more. In turn, Bitcoin’s vast capital base is starting to energize the Web3 economy. sBTC’s rapid rise is a case study in this new paradigm: Bitcoin DeFi is real, and it’s accelerating fast.
📈 Stacks Metrics Spotlight
📰 In The News:
📅 Upcoming Events:
As the Bitcoin ecosystem continues to expand across Asia, major events are bringing together key players to discuss adoption, infrastructure, and Bitcoin’s evolving role in global finance. Here’s what’s ahead:
Want More? Follow Stacks & Stacks Asia on X.
Explore all upcoming Stacks events & hackathons: Calendar
Disclaimer: Any information, links, or views expressed here are the writer's opinions and are not financial advice. They should not form the basis for making investment decisions nor be interpreted as a recommendation or advice to engage in investment transactions. Please do your own research.
Bitcoin’s market dominance is reaching new heights as institutions flood into the space, expanding treasury reserves and seeking low-risk, yield-generating strategies. BTCFi (Bitcoin DeFi) is emerging as a powerful force, offering holders new ways to activate their Bitcoin through yield funds, assets like sBTC, and staking mechanisms. Global adoption is accelerating: HK Asia Holdings became Greater China’s first publicly traded company to adopt a Bitcoin treasury, signaling a broader shift toward institutional acceptance in Asia.
Meanwhile, Bitcoin sidechains are surging, with VCs injecting $447 million into the sector in Q3 2024 alone. Q1 2025 continued this momentum, with corporate Bitcoin holdings reaching 688K BTC, representing 16.11% growth QoQ. New companies like GameStop and Semler Scientific joined the ranks, alongside giants like Strategy (formerly MicroStrategy), which now holds 528,185 BTC. This surge sets the stage for Stacks and sBTC to channel that liquidity. With sBTC withdrawals now live and the 5,000 sBTC cap closing in less than 3 hours, Stacks is emerging as the leading Bitcoin L2, driving new financial opportunities on Bitcoin’s base layer.
Strategic partnerships with SUI for seamless cross-chain integration, BitGo and Hex Trust for institutional-grade custody, Everest Ventures Group (EVG) and Aspen Digital for market penetration in Asia, and ADGM for regulatory clarity are primed to accelerate the path toward 21,000 BTC in sBTC TVL, reinforcing Stacks’ position in Bitcoin DeFi.
As institutions, high-net-worth individuals, and family offices seek to "awaken" their Bitcoin holdings, BTCFi is transforming capital flows into DeFi, redefining Bitcoin as more than just a passive asset. Let’s dive into the latest advancements in the space.
🔍 In Focus: Key Trends Shaping BTCFi in Asia
As Asia leads the charge in crypto regulation and adoption, Bitcoin L2 solutions are emerging as critical infrastructure for DeFi and institutional use. Below, we explore how key markets are driving innovation and setting the stage for the next wave of Bitcoin DeFi.
🇭🇰Asia’s Crypto Policy Shift – Hong Kong’s Comeback
Just a few years ago, Hong Kong’s crypto scene went quiet amid mainland China’s crackdown. Now, the city is staging a comeback with strong regulatory support. On April 7, Hong Kong’s Securities and Futures Commission (SFC) introduced guidelines for licensed crypto exchanges to offer staking services, provided they meet strict investor protection standards. This follows last year’s move to license retail trading and renewed Web3 commitments. SFC’s investment head, Christina Choi, affirmed the regulator’s support for Hong Kong’s Web3 journey.
This shift is re-establishing Hong Kong as a global crypto hub. Legislators are pushing for accelerated research into Bitcoin as a strategic reserve, signaling the city’s ambition to align with global digital asset developments. Local banks are now servicing crypto firms, and a stablecoin regulatory framework is underway to enhance market stability. By embracing clear rules instead of outright bans, Hong Kong is aiming to balance innovation with investor protection. All eyes are now on how these measures translate into market activity. With staking, trading, and tokenization initiatives underway, Hong Kong is positioning itself not just as compliant but as a true center for Web3 adoption, where investors can engage in crypto with confidence and oversight.
🚀 5,000 sBTC Cap Fills in 3 Hours
sBTC is moving fast. On March 31, sBTC Phase 2 withdrawals are now live back to Bitcoin L1. Withdrawals are currently capped at 150 BTC per day, with fewer than 20 BTC withdrawn so far, signaling strong holder confidence.
This increased flexibility, paired with Bitcoin’s recent market strength, has sparked rapid minting of sBTC. Stacks has now surpassed Rootstock in BTC Total Value Locked (TVL), solidifying its place as the fastest-growing Bitcoin L2 in 2025.
The next major milestone came on May 22, 2025, when the third deposit cap filled with an additional 2,000 BTC in just three hours. With over 5,000 BTC now secured, Stacks has become one of the largest Bitcoin Layer 2s—second only to Babylon. But the ambition doesn’t stop there. The Stacks Asia Foundation is partnering with Taptive, SNZ Capital, LunarCrush, and Coinage to pursue a bold new target: 21,000 BTC in sBTC TVL.
The broader implication of this momentum is profound: Bitcoin is evolving into an active asset, not just digital gold. By leveraging Bitcoin L2s like Stacks (and others like the Lightning Network), BTC can participate in smart contracts, decentralized lending, and more. In turn, Bitcoin’s vast capital base is starting to energize the Web3 economy. sBTC’s rapid rise is a case study in this new paradigm: Bitcoin DeFi is real, and it’s accelerating fast.
📈 Stacks Metrics Spotlight
- 150M STX Total Value Locked in DeFi reaches new All Time High
- 610,134,633 STX stacked in cycle 108, reaching another All Time High
📰 In The News:
- Coinbase launches Bitcoin Yield Fund - Offering BTC yields to institutions.
- Hong Kong approves staking services - Licensed exchanges now offer it.
- HK Asia Holdings adds BTC treasury - 1st public company in China to do so.
- South Korea approves BTC bill - Top pension fund can now invest.
- Vietnam pilots national crypto exchange - Bybit partnership announced.
- China sells seized crypto - Sparks renewed push for clear rules.
- sBTC integrates with Sui - Expanding Bitcoin liquidity on new-gen Layer 1.
- Stacks Asia, ADGM partner - Signaling rising institutional BTC adoption.
- Bitfinex lists STX - The global exchange listed Stacks (STX) token on April 9.
- Babylon’s BTC staking token launch - Including airdrop of 600M $BABY
📅 Upcoming Events:
As the Bitcoin ecosystem continues to expand across Asia, major events are bringing together key players to discuss adoption, infrastructure, and Bitcoin’s evolving role in global finance. Here’s what’s ahead:
- Las Vegas | Bitcoin 2025 Conference | May 27 - 29, 2025
- Vietnam | Super Vietnam | June 3 - 6, 2025
- Korea | Bitcoin Seoul | June 4 - 6, 2025
- NYC | Permissionless | June 24 - 26, 2025
Want More? Follow Stacks & Stacks Asia on X.
Explore all upcoming Stacks events & hackathons: Calendar
Disclaimer: Any information, links, or views expressed here are the writer's opinions and are not financial advice. They should not form the basis for making investment decisions nor be interpreted as a recommendation or advice to engage in investment transactions. Please do your own research.