Rootstock Labs Highlights Bitcoin Layer-2 Protocol Focus on Providing Global Access to DeFi

Speaking at Money 20/20 in Amsterdam, Ricardo Castro of Rootstock Labs highlighted the focus of the Bitcoin layer-2 protocol on providing global acess to decentralized finance (DeFi), particularly in emerging markets.

At Money 20/20 in Amsterdam, Ricardo Castro of Rootstock Labs highlighted the Bitcoin layer-2 protocol’s focus on providing global access to decentralized finance (DeFi), especially in emerging markets.

Bitcoin (BTC) and Ethereum (ETH) are the two largest decentralized networks by far, each with its own strengths. BTC is known for its strong security standards, while Ethereum’s blockchain boasts greater functionality and utility through smart contracts.

For years, developers have sought to merge the two concepts and create a network that can bootstrap decentralized finance solutions on top of BTC’s blockchain. Rootstock Labs claims to have done just that, providing Latin American users and crypto enthusiasts at large with a secure BTC-backed smart contract platform.

According to Castro, the protocol has over 2,000 BTC, currently valued at over $141 million, to support DeFi development and liquidity for decentralized applications (dapps) on the layer-2 side chain. The chain uses a native token called RBTC, which is pegged one-to-one to Bitcoin and used to validate transactions.

DefiLlama’s data also showed over $203 million in total value locked on Rootstock, including over $15 million in stablecoins. Castro told the audience that the company will continue to support innovation around Bitcoin smart contract capabilities to bridge the gap between BTC and ETH’s offerings.

The startup has a multi-million dollar prize pool for developers and has already issued over 100 grants in the past 12 months, according to the executive.