Bitcoin L2 builders pitch BTCFi as the next institutional unlock
Bitcoin layer-2 builders advocate for BTCFi, focusing on making Bitcoin a programmable financial base layer for institutional adoption.Summary
Leaders from Citrea, Rootstock Labs, and BlockSpaceForce argued at Consensus Hong Kong 2026 that the next evolution for Bitcoin is not replacing its role as digital gold, but making it productive through scaling layers that enable programmability, like DeFi functions.
Gabe Parker of Citrea emphasized that these layers introduce features like lending and borrowing, moving beyond Bitcoin's base layer limitations for smart contracts. Diego Gutierrez Zaldivar of Rootstock Labs suggested shifting terminology from 'layer two' to 'economic coordination layer.'
The primary driver for this shift is growing institutional interest in bitcoin-backed yield strategies. However, trust remains a hurdle; while centralized wrapped Bitcoin solutions offer legal recourse, protocol-based solutions like BTCFi require trusting governance and smart contract risk, leading some institutions to favor regulated counterparties currently.
(Source：CoinDesk)