Coinspeaker Haruko Taps Stacks to Bring Crypto Services to Institutional Investors
Institutional digital asset provider Haruko is about to elevate the burgeoning Bitcoin (BTC) Layer 2 (L2) ecosystem with a new development. As shared in a press release with Coinspeaker, the digital asset technology solutions provider has announced its intention to integrate Stacks, the leading Bitcoin L2 solution.
Haruko Leverages Stacks Blockchain Security and Stability
For context, Stacks is a Bitcoin L2 that facilitates the use of BTC as a secure base layer for smart contracts and Decentralized Applications (DApps). It is designed to unlock the $1 trillion domicile in dormant capital that exist in several Bitcoin wallets. In the last twelve months, the L2 solution has registered a massive volume of DApps and protocol launches on its platform.
Haruko’s move is designed to offer institutional investors easy access to Bitcoin and some Decentralized Finance (DeFi) products. Markedly, these products will be tradable on the Stacks L2, taking advantage of its scalability. Once activated, institutional investors including hedge funds can seamlessly invest in, track, and manage their investments in Stacks (STX) alongside other digital assets. They could even generate reports for their holdings.
Ultimately, the focus of this integration between Haruko and Stacks is to help investors manage their exposure to Stacks while leveraging BTC as a programmable asset. As part of the perks, these institutional investors from Haruko are bound to gain transparency and control over their assets, mitigating the huge risks usually associated with delving into such investments.
Stacks blockchain security and stability will also be available to investors while they conduct seamless consolidation of transactions, smart contracts, and Non-fungible tokens (NFTs). This is in addition to flexibility and efficiency in managing digital asset portfolios.
“By integrating with institutional-grade platforms like Haruko, Stacks becomes more accessible to key players which in turn supports global activation of the Bitcoin economy,” says Mitchell Cuevas, Executive Director at the Stacks Foundation.
Institutional Investors Pursue Crypto Investment Opportunities
The Stacks-Haruko alliance is the latest push towards the integration of traditional finance and DeFi, a move that is fast becoming a trend.
It is worth acknowledging that the launch of spot Bitcoin ETFs contributed significantly to bringing this sentiment to fruition. With some of the most reputable investment asset management firms like BlackRock Inc (NYSE: BLK) actively participating in the growing sector, more institutional investors have shown interest in cryptocurrencies over the last few months.
Also, the Bitcoin ETF sector has effectively maintained a sterling position with the amount of inflows it has registered in only five months. Little wonder that other traditional companies are seeking approaches to provide their customers with more crypto-related investments or approaches.
Last month, NYSE parent’s crypto platform Bakkt Holdings Inc (NYSE: BKKT) took a proactive stance to create the BakktX, a new type of Electronic Communication Network (ECN) designed specifically for institutional crypto trading.
There is still expectation for spot Ethereum ETF trading after the recent approval for the proposed rule change by the United States Securities and Exchange Commission (SEC). Like spot Bitcoin ETFs, Ethereum ETFs are expected to gain institutional investors’ attention in no time.
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Haruko Taps Stacks to Bring Crypto Services to Institutional Investors