For years, Bitcoin has been regarded as “digital gold” — a store of value immune to traditional financial systems. However, Carolyn Reckhow, COO of Thesis, sees this as just the beginning. Thesis, a firm exploring Bitcoin since 2014, aims to transform the cryptocurrency from a static asset into a full economic layer.
“Our belief is that while Bitcoin as an asset is king, there’s still so much more that needs to be built to allow a proper economy to function onchain,” Reckhow said in a recent interview with Coinage.
Thesis envisions a future where Bitcoin is more than just a reserve asset. It could play an active role in everyday financial scenarios, from securing loans for home purchases to becoming a key player in decentralized finance (DeFi), all while leveraging Bitcoin’s unmatched security.
Early Days and Breakthroughs
Thesis first entered the Bitcoin ecosystem with Fold, a credit card offering Bitcoin rewards. Since its launch in 2014, Fold has evolved into a widely recognized entry point into Bitcoin. But the major breakthrough came in 2020 with the launch of tBTC, a decentralized Bitcoin bridge. Described as “the decentralized version of wBTC,” tBTC allows Bitcoin to be used across multiple blockchain ecosystems, including Arbitrum and Solana.
Thesis’ ambition doesn’t stop there. Through their latest project, Acre, they’re introducing liquid staking, which allows Bitcoin holders to earn yield by putting their assets to work. “Acre is…a liquid staking protocol that allows you to earn on Bitcoin,” Reckhow explained, underscoring the potential to expand Bitcoin’s utility beyond being a store of value.
Building a Bitcoin Economy
Reckhow emphasizes the need to make Bitcoin fun and engaging, similar to how Ethereum and Solana have cultivated thriving ecosystems. She notes that their success came from creating an environment where users can experiment and interact with the blockchain. “Once you get those early adopters in the ecosystem…that allows for more builders to come in and start to build an ecosystem that brings in the next wave of users.”
Integration with DeFi platforms is another key milestone for Thesis. The tBTC project has already partnered with major platforms like Aave, a move that brings decentralized Bitcoin into the Ethereum-based DeFi world. “Having a significant project like Aave say, ‘We want to do things more decentralized, so we’re going to use tBTC instead of wBTC,’ is a huge milestone,” Reckhow noted.
The Road Ahead
While Bitcoin Layer-2 projects are still in their early stages, Thesis is not alone in its mission. Competitors like Stacks and Babylon are also working to make Bitcoin more versatile. Reckhow views this competition as a positive dynamic, given the nascent stage of Bitcoin’s evolution.
As institutional interest in Bitcoin grows, particularly with the approval of Bitcoin ETFs, the opportunities to expand its role in the financial system are greater than ever. Yet, there is still much work to be done in building the infrastructure to make Bitcoin an integral part of the DeFi landscape.
Reckhow hints that more collaborations and partnerships are on the horizon. “There are potentially other partners in the DeFi space…we’re going to see new entrants as well,” she said, signaling the vast potential for growth in the Bitcoin ecosystem.
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