Here we report on the progress of the leading builders in the zkBitcoin ecosystem, documenting recent significant releases, technical breakthroughs and general updates.
Featuring: @AlpenLabs, @babylonlabs_io, @BitlayerLabs, @build_on_bob, @citrea_xyz, @FairGateLabs/@bitvmx, @fiamma_labs, @fractal_bitcoin, @GOATRollup, @layeredge, @Starknet/@StarkWareLtd, @TheTNetwork, & @ZeroSync_.
Glock
In a recent video, Aaron Feickert, Research Engineering Lead of @AlpenLabs, explains why Alpen is developing Glock, a garbled-circuit-based system for complex computation on @Bitcoin: https://youtube.com/watch?v=vPjoYGu8x9s&t=1s
He outlines the limits of running logic directly in script, the size and cost issues of verifying full proofs onchain, and the complexity of optimistic verification used in earlier BitVM designs.
Glock shifts most work offchain, using challenges and a small disclosed secret to keep transactions minimal, reduce cost, and enable more flexible financial computation.
Stablecoins
Continuing his own educational series focused on Bitcoin scaling, @david_seroy, Head of Ecosystem of Alpen, outlines why Bitcoin-backed stablecoins are gaining renewed importance and argues that the Liquity V2 model, deployed on a Bitcoin zkRollup, offers the most credible path forward: https://youtube.com/watch?v=whp24oVbfkc
He describes how the design removes governance, upgradability, and wrapped assets, relying only on Bitcoin collateral and an external price oracle.
David highlights improved liquidation mechanics, interest-rate competition, and stronger peg stability as key advantages for creating scalable, censorship-resistant Bitcoin-denominated stablecoins.
Integrations
Alpen has integrated @atomiqlabs into its testnet, enabling Bitcoin and Lightning users to move into the Alpen ecosystem through trustless, zero-slippage swaps secured by Bitcoin PoW: https://x.com/AlpenLabs/status/1988945033693892954
The update removes fixed-size bridging limits, letting users transfer any amount at any time while accessing Alpen’s Bitcoin-backed credit, stablecoins, and yield products.
Staking
@babylonlabs_io announced a successful mainnet upgrade introducing revised tokenomics and new staking features: https://x.com/babylonlabs_io/status/1989020013949513763
Annual BABY inflation drops from 8% to 5.5%, reducing yearly issuance by about 250 million tokens. A co-staking option now lets BTC stakers earn higher rewards when also staking BABY. The update also adds a BTC stake extension tool, letting users maintain timelocks without unbonding.
Media
Recently, @dntse, Co-founder of Babylon, joined @isabelfoxenduke podcast, where they discussed his path from information theory at Stanford to co-inventing core wireless algorithms, then discovering @Bitcoin and researching faster, secure consensus:
https://youtube.com/watch?v=K_FXfmFpYXQ
https://x.com/isabelfoxenduke
He explained Babylon’s goal of extending Bitcoin’s proof-of-work security to proof-of-stake chains through trustless Bitcoin staking and slashing, already securing about 56,000 BTC at roughly 3% yield, and outlined plans for “trustless Bitcoin vaults” to enable lending and broader DeFi use without custodial risk.
Partnerships
Finally, Babylon and @Parataxis_Korea formed a research collaboration to explore BTC Treasury 2.0: https://babylonlabs.io/blog/babylon-labs-and-parataxis-korea-initiate-joint-research-to-pioneer-btc-treasury-2-0
Babylon contributes its trustless BTC Vaults technology, while Parataxis brings treasury management expertise. The partnership examines how Bitcoin held by institutions can shift from passive storage to active yield strategies.
@BitlayerLabs shared its October report: https://medium.com/@Bitlayer/bitlayer-monthly-report-october-2025-59384bbeabc8
Highlights include:
• YBTC assets expanded to @solana ecosystem, supported by new vaults and pools on @FolksFinance, @Turbos_finance, and @MMTFinance.
• Cross-chain liquidity grew across @SuiNetwork, Solana, @ethereum, @BNBCHAIN, @avax, @plumenetwork, and @Starknet.
• BTR gained support on @CoinbaseInsto Prime, enabling institutional custody and transfers.
• Bitlayer’s leadership outlined its vision for @Bitcoin-native DeFi at several industry events throughout the month.
Technology Roadmap
@build_on_bob outlined its technology roadmap through 2025 and 2026, detailing upcoming releases across governance, multichain access, and @Bitcoin-based infrastructure: https://x.com/build_on_bob/status/1987068084864290979
This year includes the launch of token and DAO governance, hybrid yield vaults, and BOB Gateway multichain swaps.
In early 2026, the focus shifts to automated strategies, an accelerator program, Bitcoin finality, and BitVM-based bridging and lending, followed by hybrid staking in the second half of 2026.
Research
BOB introduced a proposed Bitcoin Vaults Liquidation Engine designed to make native BTC practical collateral for lending across chains: https://gobob.xyz/blog/introducing-bobs-bitcoin-vaults-liquidation-engine
The system removes whitelisted liquidators, adds partial and fast liquidations, and allows atomic execution through a bridged process that coordinates multiple participants.
It preserves user control of BTC while improving responsiveness during market volatility, aiming to unlock wider use of native Bitcoin in decentralized finance.
Media
In an interview with @OdailyChina, @alexeiZamyatin, Co-founder of BOB, shared how Bitcoin’s lack of native DeFi keeps large amounts of capital inactive and why BOB is focused on activating this liquidity: https://odaily.news/en/post/5207009
He explained that BOB’s hybrid rollup, BitVM progress, institutional collaborations, and new Gateway product are designed to make Bitcoin deposits simpler, unlock native yield, and support a broader DeFi ecosystem built directly around BTC.
Partnerships
Lastly, the project has partnered with @Anchorage to give institutions secure access to its Bitcoin DeFi ecosystem: https://gobob.xyz/blog/bob-partners-with-anchorage-digital
Anchorage will serve as BOB’s preferred custodian, offering multi-jurisdictional support through its U.S. crypto bank, Singapore entity, and Porto wallet.
The collaboration provides institutions with compliant entry to BOB’s Hybrid Chain and $250M+ TVL ecosystem, aligning rising interest in Bitcoin yield with the security standards required for large-scale participation.
Tangelo
@citrea_xyz has launched Tangelo, the final testnet upgrade before mainnet: https://blog.citrea.xyz/tangelo-final-testnet-upgrade-before-mainnet/
The fork applies all audit fixes across the rollup and its BitVM-based bridge, improving reliability, security, and sequencer stability. It also enhances system recovery, prover performance, and bridge behavior under edge cases. In parallel, Tangelo cuts base fees by 90% and Layer 1 fees by 25%, making Citrea transactions significantly cheaper.
Infrastructure
Citrea has completed the first trusted setup ceremony for the ZK proofs that BitVM will verify on @Bitcoin, securing the proof system used by its Clementine bridge:
Sixty-three contributors, including major ecosystem teams, participated. The parameters can also be reused by other BitVM and BitVM3 projects. With audits and the ceremony finalized, Citrea is now preparing partners for a private mainnet environment ahead of Clementine’s upcoming launch.
₿apps Campaign
Finally, Citrea ran an invite-only testnet campaign to stress-test its ecosystem ahead of mainnet: https://blog.citrea.xyz/stress-testing-the-citrea-ecosystem/
Fifteen ₿apps across categories such as DEXs, lending, aggregators, and prediction markets took part, with more than 33,000 users joining and most completing all tasks. The campaign validated infrastructure performance under load, surfaced UX and technical improvements for participating teams, and provided data and feedback as Citrea moves toward mainnet readiness.
Publications
@FairGateLabs published an article explaining a proposed OTS-based model for building @Bitcoin payment channels using hash-based One-Time Signatures instead of the revocation schemes used in Lightning today: https://fairgate.io/publication/30-ots-pc-simplifying-lightning-channels-with-one-time-signatures
The design assigns sequence numbers to channel states and enforces honest exits through automatic penalties, while reducing watchtower storage to a constant-size set.
It also enables configurable privacy levels and remains fully compatible with existing Lightning infrastructure, including HTLCs. The article outlines how this approach can simplify channel logic without reducing security.
Events
Fairgate published two articles covering its presence in Buenos Aires, outlining how the team advanced discussions around BitVMX, off-chain computation, and Bitcoin scalability:
1. The first article focuses on Fairgate’s contributions at @labitconf and its own side event, showing how BitVMX is maturing into a platform for real-world Bitcoin computation: https://fairgate.io/post/31-fairgate-buenos-aires-pt-1-unveiling-bitvmxs-potential-real-world-applications
Key takeaways:
• CTO @SDLerner presented BitVMX at LABITCONF, emphasizing its modular design and advanced primitives for secure computation.
• At Fairgate’s side event, Sergio expanded on BitVMX as the foundation for scalable off-chain execution.
• CSO @AFutoransky detailed how garbled circuits are becoming practical tools for decentralized computation.
• The team introduced new protocol mechanisms aimed at improving capital efficiency and scaling dispute resolution.
2. The second article examines Fairgate’s role during Devconnect, where the team deepened technical discussions around the future of computation on Bitcoin.
Takeaways:
• Sergio shared updated insights on BitVMX and previewed upcoming work on Covenants.
• A technical panel with @SuperTestnet, @liameagen of @AlpenLabs, and Sergio - moderated by @isabelfoxenduke - explored scalable off-chain proofs and modular protocol design.
• At the @WPReadingClub, Sergio and Martín Jonas joined discussions on foundational papers, highlighting Fairgate’s influence on Bitcoin L2 research.
BitVMX Progress
@bitvmx shared its latest updates, highlighting ongoing improvements across the codebase: https://x.com/bitvmx/status/1989472413311275281
Highlights include:
• The Protocol Builder received an updated ots_checksig with stricter length checks and stack-tracker integration.
• CPU-side instruction witnesses are now fully functional, with added verification for n-ary search selection bits.
• QA increased coverage through deeper testing of Protocol Builder components to strengthen reliability and overall system robustness going forward for developers.
@fiamma_labs announced an expansion of its Fiamma Bridge, integrating @LayerZero_Core’s OFT framework to enable trust-minimized transfers of native BTC through BitVM2: https://x.com/fiamma_labs/status/1984201461216284873
The update allows FIABTC to move directly across multiple chains without routing through @Bitcoin, making it a unified multichain asset on networks such as @SeiNetwork, @Aptos, @base, and @HyperliquidX, with more integrations planned.
According to Fiamma, the bridge remains non-custodial, trust-minimized, and designed to improve Bitcoin interoperability.
@fractal_bitcoin reported a series of internal adjustments following its one-year anniversary and the completion of all investor and contributor unlocks: https://x.com/fractal_bitcoin/status/1988998999731536174
The team has restructured roles, reallocated resources, and strengthened its position within @unisat_wallet ecosystem through closer collaboration with @SatWorld_io, @Fractal_TLB, wangcai, and @MoonCats__.
These steps support upcoming brand upgrades, updates across key products like UniHexa, and the development of Fractal’s 2026 roadmap leading into the next halving.
Publications
@GOATRollup shared an article explaining how corporate Bitcoin treasuries may appear secure, but remain structurally fragile because their assets are either idle in cold storage or exposed to centralized platforms with historical failure risks: https://goat.network/blog/corporate-bitcoin-treasuries-are-glass-houses-not-fortresses
The piece argues that current models force institutions to choose between safety and utility, and suggests that dedicated Bitcoin L2 networks could provide both secure custody and transparent, activity-based yields, creating more resilient long-term treasury infrastructure.
Events
The GOAT Network has taken part in a series of @EFDevcon Buenos Aires events, with Core Contributor @sd_eigen speaking across multiple sessions throughout the week: https://x.com/GOATRollup/status/1989398464909004901
• Stephen took part in the BitVMX Whitepaper Session at BTCFi Day, hosted by @WPReadingClub, covering foundational research for Bitcoin’s emerging DeFi layer.
• He also spoke at ZKONNECT, co-hosted by @brevis_zk and @HouseofZK, in the session “EVM Proved in 10 Secs: The Race to Real-Time Proving”, and joined a panel on using ZK to preserve user privacy in AI, where he additionally discussed ZKM’s ongoing audit of Ziren with @VeridiseInc.
• Next, Stephen will take part in the Native BTCFi Summit by @build_on_bob and @babylonlabs_io to discuss how chains are shaping the BTCFi landscape.
• He will also join Asia Web3 Day by @OpenBuildxyz for the panel “Building Across Cultures: Inside the Real Work of Global Collaboration.”
• Further appearances include StarkConnect by @StarknetFndn and the ZK Real World Summit by @zk_monk, joining discussions on privacy-preserving chains and the next layer of ZK infrastructure.
Media
In a recent interview, @kevinliub, Core Contributor of GOAT Network, outlined how the team plans to drive Bitcoin L2 into its next growth phase: https://goat.network/blog/interview-with-kevin-core-contributor-of-goat-network
He highlighted priorities such as real-time proving, secure cross-layer communication, and institutional-grade BTC yield. The roadmap includes BitVM2 Beta-Mainnet, the Ziren GPU Prover release, a DOGE bridge, and new ecosystem funds aimed at activating dormant Bitcoin liquidity.
HoZK Radio
Finally, Dr. Redouane Elkamhi, Chief Economist at GOAT Network, joined @alicelingl on an episode of House of ZK Radio: https://x.com/HouseofZK/status/1990482415283056784
He covered what a Bitcoin L2 should look like from first principles, drawing on his work at GOAT and his academic background. The discussion also explored GOAT’s decentralized sequencing model - now influencing @Starknet - and its role in the BitVM Alliance developing Bitcoin-native bridges and rollups.
Full podcast: https://hozk.io/radio#88-dr-redouane-elkamhi-chief-economist-at-goat-network
@layeredge announced a partnership with @trondao to bring ZK verification to one of the largest L1 networks: https://layeredge.medium.com/layeredge-partners-with-tron-strengthening-onchain-verifiability-through-edgenos-dbd8191ee35b
Through edgenOS, the system verifies Tron block headers and anchors aggregated proofs to @Bitcoin for added integrity. The integration offers Bitcoin-grade verification to Tron’s high-volume ecosystem, improving transparency for financial and DeFi applications.
By anchoring proofs externally, Tron gains an additional independent verification layer beyond its validator set.
Publications
@Starknet published two articles that outline its long-term positioning in both @Bitcoin security and Bitcoin-native DeFi, highlighting how the network is preparing for major shifts in cryptography and economic activity around BTC:
• The first article examines the accelerating threat of quantum computing to Bitcoin’s cryptographic security and explains how Starknet’s STARK-based architecture, quantum-resistant hashes, and upgradeable account-abstraction wallets position the network for post-quantum readiness. It also details the roadmap, wallet strategy, and industry coordination required for a safe transition: https://starknet.io/blog/bitcoin-quantum-security-with-starks/
• The second focuses on Starknet as Bitcoin’s emerging DeFi domain, describing how BTC staking, BTCFi Season incentives, deep liquidity, and institutional-grade structured products create sustainable, organic BTC yield. It highlights the full BTCFi flywheel - from onboarding and collateralization to advanced strategies - and shows how Starknet is becoming the long-term home for Bitcoin yield generation: https://starknet.io/blog/bitcoin-defi-domain/
Events
Speaking at the BTCFi Summit in Singapore, @StarkWareLtd CEO @EliBenSasson outlined how his early work on ZKPs eventually converged with Bitcoin’s scaling needs: https://starknet.io/blog/eli-ben-sasson-on-zero-knowledge-proofs-and-bitcoin/
Eli reflected on the shift from academic research to applied cryptography and detailed recent StarkWare efforts, including covenant research, live STARK proofs on a Bitcoin testnet, and work showing how ZK systems can operate without protocol changes. He emphasized Starknet’s goal of enabling scalable, self-custodial Bitcoin use.
Media
1/ @HouseofZK hosted Eli Ben-Sasson in one of its recent episodes. Together with @alicelingl, they talked about Bitcoin scaling progress, Starkware’s renewed focus on Bitcoin, and what is required for mainstream adoption: https://x.com/HouseofZK/status/1988951609938747778
Eli outlined security-driven L2 approaches, ongoing OP_CAT and OP-Stark research, client-side proving for better privacy UX, Starknet’s decentralization work, and how settling on Bitcoin can deepen trustless interoperability across ecosystems.
Full podcast: https://hozk.io/radio#87-eli-ben-sasson-ceo-of-starkware-co-founder-of-zcash
2/ Additionally, Eli spoke to @0xMert_, CEO of @heliuslabs, about the StarkWare CEO's path from academic complexity theory to co-founding @Zcash, StarkWare and Starknet: https://youtube.com/watch?v=nz_o3hYOZCI&t=1s
Eli offered a deep-dive into ZKPs, stressing scalability and privacy via polynomial-based proofs, and contrasts ZK with MPC, TEEs and FHE, arguing only ZK delivers trustless integrity.
He presented Starknet as a high-compute, decentralised rollup settling to @Ethereum and Bitcoin, focused on safely financialising Bitcoin and enabling advanced DeFi and gaming.
Partnerships
Starknet has added BTC staking through @Anchorage, giving institutional clients a way to earn rewards while keeping their assets in trusted custody: https://x.com/Starknet/status/1991129411182113256
Anchorage’s support also lets institutions contribute to the network’s decentralization by staking Bitcoin directly on Starknet.
Update
@TheTNetwork has introduced major upgrades to expand @tBTC_project’s role in @Bitcoin onchain markets, adding gasless minting, direct redemptions, and cross-chain minting to supported L1 and L2 networks: https://threshold.network/blog/tbtc-simplifying-bitcoin-onchain/
The update accompanies a refreshed institutional-focused brand and website, reflecting rising demand from professional BTC holders. Threshold also broadened tBTC integrations across leading DeFi protocols, while the new app provides a streamlined interface for moving, deploying, and tracking Bitcoin onchain with greater efficiency and transparency.
Publications
Threshold published a research article covering how Bitcoin ownership is shifting and why most BTC remains inactive once it leaves exchanges: https://threshold.network/blog/tbtc-perspective-report-exploring-bitcoins-onchain-opportunity-through-tbtc/
The piece highlights findings from @AleaResearch, showing rising long-term holding and steady demand for wrappers that let users deploy BTC onchain.
Threshold points to tBTC’s trust-minimized design, which uses distributed signers to give holders a secure, neutral way to access DeFi without relying on a single custodian.
Audit
@ZeroSync_ announced that its BitVM2 implementation has successfully completed a full audit by @zellic_io, with all issues resolved and the system strengthened: https://x.com/ZeroSync_/status/1990935381764641200
The team says SNARK verification on Bitcoin is now prepared for mainnet deployment. The update also acknowledges contributions from the BitVM Alliance, including @citrea_xyz, @GOATRollup, @build_on_bob, @babylonlabs_io, @BitlayerLabs, @AlpenLabs, and @fiamma_labs.
Media
In a recent episode of @HouseofZK Radio, BitVM & ZeroSync creator @robin_linus joined @alicelingl, where they discussed the need for scaling @Bitcoin, the limitations of Bitcoin script, and how optimistic verification led to the BitVM designs: https://x.com/HouseofZK/status/1988269684127363179
Robin outlined why programmability is mostly a byproduct of enabling payment-focused scalability, and explained how BitVM3’s use of garbled circuits sharply reduces onchain costs.
He also touched on opcode proposals, future scripting improvements, and ongoing research into more efficient garbling schemes.
Full podcast: https://hozk.io/radio#86-robin-linus-creator-of-bitvm-zerosync
