A New Chapter for Bitcoin: From Store of Value to Financial Powerhouse
At the Bitcoin 2025 conference in Las Vegas, top developers and founders revealed a shared vision: Bitcoin DeFi (Decentralized Finance) is ready to reshape the financial world. Moving beyond its role as a store of value, Bitcoin is being positioned as the foundation for trustless financial systems that offer self-sovereignty, real-world utility, and global access.
Bitcoin is “too big to remain passive,” say developers building DeFi solutions on top of the Bitcoin network.
Layer-2s and Sidechains Fuel the DeFi Expansion
Key innovations like Liquid Network, Rootstock (RKS), and Babylon are creating the infrastructure needed to run DeFi apps on Bitcoin. These Layer-2 and sidechain solutions bring smart contract capabilities to Bitcoin while preserving its unmatched base-layer security.
Rootstock’s merged mining hit an all-time high in Q1 2025, signaling growing adoption of Bitcoin DeFi infrastructure.
Jacob Phillips, co-founder of Lombard Finance, explained how users can now stake Bitcoin for yield through protocols like LBTC, turning static BTC into an active, yield-generating asset.
Self-Custody and Security Are Non-Negotiable
Speakers emphasized the importance of self-sovereignty and decentralization. According to Blockstream CEO Adam Back, users can now earn real Bitcoin yield via Layer-2 staking, eliminating the need for custodial platforms and ETFs.
“Bitcoin-native applications will offer better rates, lower fees, and greater privacy than traditional finance,” Back stated.
Joseph Kelly, CEO of Unchained, stressed the role of collaborative custody in replacing centralized intermediaries. Their model allows clients to retain control over their funds using multisig vaults, reinforcing the principle of trustless ownership.
Bitcoin DeFi: A Real Threat to Legacy Systems
DeFi builders believe that Bitcoin will outperform traditional finance (TradFi) by providing lower-cost borrowing, instant finality, and censorship resistance. According to Adrián Eidelman of RootstockLabs, Bitcoin’s secure infrastructure is uniquely suited to become the foundation of a new, global financial system.
DeFi on Bitcoin is not a theory—it’s already being built, tested, and adopted.
Final Thoughts
As regulatory landscapes evolve and DeFi matures, Bitcoin’s transition from passive value storage to a financial instrument may be the most important shift in crypto. With yield generation, lending, and asset control now possible directly on Bitcoin, 2025 could mark the year DeFi begins to rival TradFi—on Bitcoin’s terms.