What is a Stacks Wallet?

General Wallet Use

15 min

In the early days of Bitcoin, crypto wallets were simple. Their capabilities were limited to simple transactions like storing, sending, and swapping cryptocurrency. Back then, all users needed was a software application with basic functionality to manage addresses, initiate transactions, and check balances.

The crypto world looks very different today and wallets have incredible versatility and functionality. Paper wallets still exist, along with software wallets, hardware wallets, and browser extension wallets. But with the emergence of Web3 and the proliferation of decentralized finance (DeFi) on Bitcoin and decentralized applications (dApps), the needs of Bitcoin wallets have expanded dramatically.

Today, there are many kinds of wallets compatible with different blockchains and L2s. Let’s talk about Stacks wallets and how they’re impacting the Bitcoin ecosystem.

Understanding Stacks Bitcoin Wallets

During the Bitcoin innovation boom in 2023, Bitcoin DeFi, NFTs, and L2s solidified themselves as critical parts of the ecosystem. The Stacks protocol stood out as a unique blockchain that brings many new possibilities to Bitcoin’s evolution. At its core, Stacks introduces a layer 2 (L2) solution enabling smart contracts and decentralized applications (dApps) to be built on top of the Bitcoin blockchain.

Understanding the Stacks L2

Stacks is a L2 scaling solution specifically designed to extend the functionality of the Bitcoin network. It leverages a consensus mechanism known as Proof-of-Transfer (PoX) and a smart contract language known as Clarity. Together, these features ultimately allow developers to build dApps that operate on a Bitcoin L2 while settling on the Bitcoin L1, benefitting from the main blockchain's security and immutability.

This unique approach enables the Stacks blockchain to provide a secure and decentralized platform for executing smart contracts and dApps, all while maintaining a strong connection to the Bitcoin network.

Exploring Stacks Wallets

A Stacks wallet is a specialized cryptocurrency wallet designed to interact with the Stacks blockchain and its ecosystem. Similar to traditional Bitcoin wallets, Stacks wallets allow users to store, send, and receive Stacks tokens (STX) as well as interact with Stacks-based smart contracts and dApps. What sets Stacks wallets apart is their seamless integration with the Stacks L2, and this native integration gives users the ability to explore the increased programmability Stacks has brought to the Bitcoin network.

Stacks wallets can also have features like decentralized identity (DID) management and support for non-fungible tokens (NFTs). In essence, a Stacks wallet serves as the gateway to the Stacks ecosystem and, therefore, many of the new and expanding technologies growing on Bitcoin.

How do Stacks Wallets Work? 

A crypto wallet is your point of connection to the blockchain world. Think of it as a central hub where you can transact, manage your assets, and interact with different protocols and dApps. Stacks wallets, specifically, are your portal to the Stacks ecosystem which, in turn, opens the world of Bitcoin DeFi, NFTs, and digital identity.

Leather is one of the best and most widely-used Stacks wallets — it’s a perfect example of the many features modern crypto wallets offer. Formerly known as the Hiro Wallet, and now part of the Trust Machines ecosystem, Leather makes navigating the digital economy easy for any Bitcoin enthusiast.

Taking Crypto Wallets to the Next Level

Modern Stacks wallets like Leather have important features like:

  • Self-custody, putting ownership in the hands of crypto holders

  • Open-source and audited, ensuring transparency and reliability

  • Easy token management, including BTC, STX, BRC-20, and other Bitcoin tokens

  • Access to other digital assets like Stacks NFTs, Ordinals, and Bitcoin Stamps

  • Integration with Bitcoin Name System (BNS), giving users control over their DIDs

  • Connection with DeFi protocols rapidly growing in the Stacks ecosystem

  • Interoperability with emerging L2 solutions, making moving assets between layers easy

  • Native access to platform mechanisms like Stacking

Leather is a comprehensive platform for managing various digital assets including BTC, STX, and other Bitcoin assets like BRC-20 tokens. Users can also hold Ordinals, Stacks NFTs, and Bitcoin Stamps in a Leather wallet. It gives you complete control over your assets with a user-friendly way to access portfolios and protocols.

Security and control are also a critical element for modern crypto wallets. Self-custody, open-source, and audited wallets like Leather prioritize protecting user assets and privacy. Secure wallets like Leather also give you full control over your private keys, ensuring the highest level of security at all times.

Leather also facilitates interactions with the Stacks ecosystem by providing a user-friendly interface for managing Stacks tokens (STX) and accessing various Stacks-based applications. Securely storing, sending, and receiving STX tokens, or participating in Stacking activities to earn rewards is easy with a Stacks wallet like Leather.

It’s also easy to mint, trade, and collect Stacks NFTs directly within a Leather wallet. You can also participate in governance processes and interact with smart contracts deployed on the network.

If you've been interested in exploring Bitcoin DeFi, NFTs, or blockchain applications, you may have been frustrated with the user experience of earlier wallets. Today, modern wallets like Leather make collecting digital art, using DeFi tools, or interacting with the blockchain easy.


The crypto world has changed a lot in the last few years and modern applications and wallets are improving user experience and functionality every day. Scaling solutions like Stacks are quickly expanding the capabilities for building on Bitcoin — and Stacks wallets make using those new technologies easy. If you haven’t tried it for yourself, get a Leather wallet or another Stacks wallet and start your journey.

Connect to Web3 applications built on Bitcoin with the Leather browser extension. Install Leather – the only wallet you need to tap into the multilayered Bitcoin economy – today.