Fireblocks Integrates Stacks, Slashing Block Times to 29 Seconds
Institutional crypto infrastructure company Fireblocks announced it will integrate Stacks, a layer-2 network for Bitcoin, to open up decentralized finance (DeFi) opportunities for its clients. The integration, scheduled to go live in early 2026, directly addresses one of the primary hurdles for financial applications on Bitcoin: its average 10-minute block time. By leveraging the Stacks layer, which processes transactions with an average block time of 29 seconds, institutions can access lending and yield-bearing products without the latency of the main Bitcoin chain. All transactions on Stacks ultimately settle on the Bitcoin blockchain, preserving its security and finality.
Bitcoin DeFi Holds $5.5B TVL Despite Market Correction
The move signals sustained institutional interest in building financial products on Bitcoin, even as the market experiences a significant downturn. The total value locked (TVL) in Bitcoin DeFi applications currently stands at approximately $5.5 billion, according to data from DeFiLlama. This figure is down from a peak of over $9 billion reached in October 2025 but represents substantial growth from just $704 million in October 2024. This partnership's timing is notable, occurring while Bitcoin's price is down roughly 40% from its all-time high of over $125,000, indicating a long-term strategic focus rather than a reaction to short-term market trends.
Analysts Forecast $200B Potential for Bitcoin DeFi
Proponents believe this infrastructure development is crucial for unlocking Bitcoin's potential as a productive financial asset. Matt Hougan, Chief Investment Officer at BitWise, has forecast that the Bitcoin DeFi market could eventually expand to become a $200 billion sector. By providing a familiar and secure platform through Fireblocks, this integration serves as a critical on-ramp for institutional capital that has so far remained on the sidelines. While some critics raise concerns that second-layer solutions could impact the base layer's decentralization, the partnership between Fireblocks and Stacks marks a significant step toward maturing the Bitcoin DeFi ecosystem.
