Bitcoin Layer 2s enhance Bitcoin’s programmability, enabling DeFi and Web3 applications to be built on Bitcoin while maintaining its security and decentralization. This has brought up new solutions like Stacks, a Bitcoin Layer 2, and sBTC, a Bitcoin-pegged token built on Stacks.

In this article, we explore what sBTC is and what it brings to Bitcoin. We also list three wallets you can use to store and manage your sBTC tokens.

What Is sBTC?

sBTC is a decentralized, non-custodial bitcoin-pegged asset introduced on the Stacks Bitcoin layer to enhance bitcoin’s functionality in decentralized finance (DeFi).

It enables users to convert their BTC into sBTC on a 1:1 basis, allowing participation in smart contracts and DeFi applications while retaining ownership and security of their original bitcoin holdings.

The introduction of sBTC aims to unlock new possibilities for bitcoin holders, including access to lending, borrowing, and earning yields within the Bitcoin DeFi ecosystem.

Top 3 Crypto Wallets for sBTC

sBTC wallets ensure secure storage, seamless transactions, and easy DeFi access on Stacks. Choosing the right wallet is key for security, usability, and full asset control.

Below are the top three wallets you can use to manage your sBTC.

Xverse

Xverse is a market-leading wallet for sBTC due to its robust and user-friendly features that cater specifically to Bitcoin’s growing Web3 ecosystem, DeFi applications, and Bitcoin-backed assets.

Designed with both security and usability in mind, Xverse empowers users to seamlessly interact with Bitcoin Layer-2 solutions like Stacks, enabling them to engage in smart contracts, DeFi lending, and staking while maintaining full custody of their assets.

Key Features

• Native sBTC support: Xverse enables users to fully manage their sBTC holdings, mint, store, send, and receive sBTC.

• Bitcoin DeFi and yield opportunities: Users can stake and earn a yield on bitcoin paid in sBTC, unlocking passive income opportunities within the bitcoin DeFi ecosystem.

• Enhanced security and self-custody: As a non-custodial wallet, Xverse ensures users retain complete control over private keys and assets, with Ledger hardware wallet integration for added security.
• Xverse Stacking: Xverse users can participate in stacking, and earn BTC rewards by locking their STX.

Leather Wallet

Leather Wallet is a self-custodial Bitcoin and Stacks wallet designed for seamless access to Bitcoin-native assets like sBTC, Ordinals, and BRC-20 tokens.

Beyond simple storage, Leather Wallet is designed to be a gateway to the expanding Bitcoin ecosystem.

Whether you're trading Ordinals, interacting with decentralized finance (DeFi) applications on Stacks, or minting BRC-20 tokens, Leather provides an intuitive and secure experience.

Key Features

• Bitcoin DeFi integration: Leather enables users to bridge BTC into sBTC to earn Bitcoin yield and participate in self-repaying loans and liquidity pools.

• Self-custody and security: Users retain full control over their sBTC without third-party custodians, with Ledger hardware wallet integration for enhanced security.

• Intuitive user interface: Designed for ease of use with a fresh user interface, making it accessible for both beginners and experienced users.
• Stacking functionality: Leather users can participate in stacking, and earn BTC rewards by locking their STX tokens.

Asigna Wallet

Asigna is a multi-signature (multisig) smart wallet tailored for Bitcoin Layer 1 and Layer 2 networks and Layer 1 metaprotocols.

Designed for users and organizations prioritizing security and collaborative asset management, Asigna ensures that no single party has unilateral control over funds.

Asigna is useful for businesses, DAOs, and institutional investors looking to manage bitcoin-based assets with enhanced governance and security. Beyond its security model, Asigna provides seamless compatibility with Bitcoin-native applications.

Key Features

• sBTC integration: Asigna enables users to send, receive, and bridge sBTC to native BTC directly within the app, facilitating seamless interaction between Bitcoin and Stacks ecosystems.

• Compatible with Stacks: Users can interact with Stacks decentralized applications (dApps) from a single console within their multisig setup, streamlining access to various DeFi services and tools.

• Stacking support: Asigna users can participate in stacking, and earn BTC rewards by locking their STX tokens within the multisig wallet, thereby enhancing asset utility and potential returns.

Final Thoughts

As Bitcoin DeFi keeps growing, having a secure and efficient wallet for managing sBTC is essential. Whether you’re minting, trading, or earning yield, choosing the right wallet ensures seamless access to the growing ecosystem.

With the rise of Bitcoin Layer-2 solutions like Stacks, users now have greater opportunities to participate in decentralized finance while maintaining Bitcoin’s security and decentralization.