Strategic Funding Boost for Bitcoin-DeFi Vision
Build on Bitcoin (BOB), a layer-2 blockchain network aiming to unlock decentralised finance (DeFi) capabilities for native Bitcoin, has raised $21 million in strategic funding since December 2024. The most recent funding round secured $9.5 million and included participation from major investors such as Castle Island, Anchorage, Amber Group and sats Ventures.
Several existing investors, including Castle Island, increased their contributions in this latest round. Nic Carter, founding partner of Castle Island, said, “We also continue to believe that Bitcoin will be the bedrock of DeFi, and we think BOB will be a marquee L2.”
New Infrastructure to Power Native BTC DeFi
BOB is developing infrastructure to allow native Bitcoin to be used directly in DeFi applications. The upcoming launch of the BitVM bridge is expected to be a major milestone, enabling Bitcoin holders to transfer BTC across different blockchains without wrapping or using custodians. BOB’s chief technology officer Dominik Harz confirmed that BTC-staked finality is expected to launch by the end of 2025. This upgrade will facilitate BTC-secured bridges to other smart contract networks like Solana, Ethereum and Sui.
BOB Hybrid layer-2 structure Source: vlayer devs
Harz said, “Users, institutions, apps and wallets everywhere will be able to access native BTC DeFi via BOB.”
Mainnet Launch Planned for Late 2025
BOB recently went live with its testnet, supported by partners such as Lombard, Amber Digital and RockawayX. The mainnet launch is scheduled for the fourth quarter of 2025. As of early August, BOB’s total value locked stands at $212 million, with DeFi-related TVL at $132.2 million and over 553,000 users on the platform.
The project employs a hybrid chain model that merges Bitcoin’s security with Ethereum’s DeFi flexibility. It is part of the Superchain and functions as an Ethereum rollup using the OP Stack while also integrating Bitcoin finality via Babylon.
The End of Wrapped Bitcoin?
Historically, Bitcoin DeFi has depended on centralised services or wrapped tokens like wBTC, tBTC and HBTC. These versions required users to deposit real BTC with a custodian to receive a tokenised representation usable on DeFi platforms. While effective, this model introduced custodial risks and moved away from Bitcoin’s decentralised ethos.
BOB TVL Source: DefiLlama
BOB’s BitVM2 technology aims to change that by enabling trust-minimised interaction with DeFi applications directly from native BTC. Co-authored by BOB co-founder Alexei Zamyatin, BitVM2 introduces fraud proofs that allow users to maintain control over their BTC while participating in DeFi protocols.
Bridging Bitcoin with Ethereum’s Versatility
BOB is building what it calls a hybrid DeFi experience. By combining Bitcoin’s resilience and Ethereum’s smart contract capabilities, it aims to offer a decentralised ecosystem where Bitcoin users no longer need to rely on wrapped assets. The network’s ultimate goal is to preserve Bitcoin’s core security principles while making it compatible with next-generation DeFi applications.
