Why Bitcoin Layer-2s Are Suddenly Getting Interesting

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For this week’s Tuesday episode, I interviewed Muneeb Ali, the founder of Stacks.

Stacks is a Bitcoin layer-2 blockchain that turns BTC into programmable money — unlocking smart contracts, lending markets, and yield without changing Bitcoin’s base layer. The network has already surpassed $500 million in total value locked and is pushing toward self-custodial infrastructure that removes the need for signers or bridges.

We discuss Muneeb’s journey from Princeton PhD to building one of the earliest Bitcoin layer-2s, why Bitcoin DeFi (or BTCFi) is finally having its moment, and how institutions, nation-states, and even bots are in the next wave of adoption.

Muneeb also breaks down why Stacks’ BTC-backed assets are taking off, what the Satoshi upgrade means for scalability, and why making Bitcoin productive could reshape the global financial system.

TIMESTAMPS:

0:00 – Intro

1:15 – Why Muneeb built Stacks

3:23 – Bitcoin’s durability vs Ethereum’s experimentation

8:19 – Why Bitcoin needs L2s (and Ethereum doesn’t)

10:12 – BTCFi: Unlocking yield without selling

13:04 – $500M in BTC locked for 3% yield

15:08 – The technical breakthrough: trustless self-custody

20:19 – Institutional demand & strategic reserves

25:11 – The new wave of Bitcoin adoption

30:33 – What developers want to build on Bitcoin

34:45 – Why the next DeFi cycle starts with BTC

38:01 – The mission for Stacks

44:10 – Long-term vision: the default Bitcoin adoption layer

47:21 – Final advice: stay humble, survive, and keep re-learning

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Money and people moves

1. Turnkey has raised $30M in a Series B round led by Bain Capital Crypto for its crypto infra startup

2. Plasma’s XPL Token Sale Attracts $500M as Investors Chase Stablecoin Plays (CoinDesk)

   1. Seperately…KULR Plans to Raise Up to $300M to Fuel Bitcoin Purchases (CoinDesk)

3. Tigran Gambaryan, the Binance executive who spent eight-months detained in a Nigerian prison (the charges were later dropped), has departed his role as head of financial crime compliance at the exchange

4. Abril Zucchi transitioned into head of AI growth at Abstract chain

Talking points for the road

Crypto-focused headlines or research that caught my eye…and should catch yours, too.

1. Argentine President Milei Exonerated in Libra Meme Coin Probe (Decrypt)

2. BlackRock’s spot Bitcoin ETF becomes fastest to hit $70 billion, crushing gold’s previous record (The Block)

3. What Mark Cuban still misses about Bitcoin (Blockworks)

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Please note that this content is for informational and entertainment purposes only. Any views shared should not be considered financial advice, nor should it be used to make investment decisions. Cryptocurrencies are high risk and you should consult a financial professional before making any financial decisions. Make sure you do your own research. We may have a direct or indirect financial interest in content mentioned in this newsletter.