Figment announces support for Stacks, will become a Signer on the leading Bitcoin L2

Dear Figment, welcome to the Stacking party.

Figment is one of the leading providers for blockchain infrastructure, partnering with the industry’s top exchanges, custodians, wallets and asset managers. Today, I’m excited to share that Figment will support the Stacks layer with an institutional ‘Stacking’ solution and start rolling out service to their network of 250+ clients.

Figment brings deep expertise in security and industry best practices. They have become a hands-on contributor, supporting the Stacks network with the rollout of the expected Nakamoto and sBTC upgrades. This post will break down what this means and why it matters. 

Unleashing the Potential of Bitcoin on the Stacks layer

We’re at the forefront of a Bitcoin renaissance that will usher in new opportunities to make BTC a productive asset. sBTC will enable fast, low-cost transfers of BTC on Layer 2, and more expressive applications that will unlock new use cases for Bitcoin. Building a robust validator network is a top priority that will help ensure the network is secure and decentralized. This is an important step toward that goal and we are glad Figment has decided to join us on the frontier. 

Figment’s Strategic Role as a Signer on the Nakamoto Upgrade

Importantly, Figment announced they will become a Signer for the upcoming Stacks Nakamoto upgrade, helping Stacks take another step forward as a complete Bitcoin L2. Stacks Signers will have a key role: To validate (or ‘sign’) Stacks blocks and process sBTC transactions, ensuring seamless movement of BTC between Layer 1 and Layer 2. Through this integration, Figment is helping to secure the network and enable the next generation of scalable Bitcoin applications.

A Unique Offering for Bitcoin Staking

There is a huge untapped opportunity for Bitcoin staking. Stacks is the only layer that is able to offer a native Bitcoin yield, which it achieves through its novel Proof-of-Transfer (PoX) consensus mechanism. This mechanism is how Stacks achieves Bitcoin’s reorg resistance, inheriting the essential security properties that make Bitcoin the world’s most trusted network. Figment is positioning itself as an early mover in this sector and is exploring novel products that it could enable.

Bringing Institutional-Grade Services to Stacks

Figment's involvement brings institutional-grade infrastructure and services to the Stacks ecosystem. Their expertise provides a solid foundation for institutions looking to explore and capitalize on the opportunities in the Bitcoin DeFi space. With Figment's support, these institutions can confidently participate in Stacks, knowing they have a reliable and experienced stacking partner onhand.

How Does This Affect Builders?

  • White Label Services: Figment’s White Label services allow builders to integrate stacking directly into their applications without the additional overhead of running a Signer node.

  • Easy Integration: Figment offers flexible APIs that allow app developers the ability to manage their token operations in a seamless way.

  • Security & Performance: Figment’s infrastructure is optimized for security and resilience of staked assets, while providing high uptime for their services.

Concluding Thoughts

The sBTC working group is excited to work closely with Figment over the next few months rolling this out. They have become an active participant on the Stacks network and share a deep understanding of the Bitcoin L2 vision.

If you are interested in supporting institutional stacking services within your business or application, please get in touch.