Experts say new Bitcoin DeFi projects will turn Bitcoin into a powerful financial tool.
- Bitcoin DeFi projects are growing fast, aiming to rival traditional banks.
- Layer 2 solutions offer lower fees, privacy, and more control.
- Developers focus on security, self-custody, and financial freedom.
Bitcoin DeFi Gains Momentum
At the Bitcoin 2025 conference in Las Vegas, developers and founders agreed on one thing — Bitcoin is evolving. Instead of just being a store of value, Bitcoin is becoming a base for new financial tools. These tools, known as DeFi (decentralized finance), aim to give users more freedom and control, without middlemen.
Projects like the Liquid Network and others are building on Bitcoin’s infrastructure. They want to offer services that allow people to borrow, lend, or earn yields using Bitcoin.
New Tools for a New System
Jacob Phillips, co-founder of Lombard Finance, says Bitcoin DeFi is about giving power back to users. With tools like LBTC and the Babylon blockchain, people can stake their Bitcoin and earn without needing a bank.
Adrián Eidelman from RootstockLabs supports this view. His team uses Bitcoin’s layer 2 (L2) technology to build smart contracts. These apps work like digital agreements, but without relying on companies or governments.
Charlie Hu from Bitlayer pointed out that Bitcoin itself should remain the final layer for security. Adding tech should not put the core system at risk, he said.
Focus on Security and Control
Adam Back, CEO of Blockstream, explained that staking Bitcoin on layer 2 networks helps people earn without giving up control. He said it’s better than traditional systems, like ETFs, because users don’t need permission or trust third parties.
Yves La Rose, head of Vaulta, emphasized self-custody. That means users hold their own Bitcoin in secure wallets, not exchanges. This helps protect against hacks and censorship.
Joseph Kelly, CEO of Unchained, agreed. His company uses multisig vaults where clients control the keys. This reduces risks and eliminates the need for banks.
Global Impact and Next Steps
Even in countries with unstable economies, Bitcoin DeFi is making a difference. Eidelman mentioned places like Argentina, where people use stablecoins to escape crashing currencies. These coins are backed by Bitcoin, making the asset even more useful worldwide.
Rich Rines from Core DAO said Bitcoin is shifting from just storing value to offering real services. That’s the future Bitcoin DeFi hopes to build — a system that’s secure, open, and smart.
Source: cointelegraph.com
