Bitlayer says it has raised $11 million in its series A round led by Franklin Templeton and ABCDE, bringing its total funding to $16 million.
Bitcoin-focused layer-2 solution Bitlayer has secured $11 million in a Series A funding round led by Franklin Templeton and ABCDE to expand the list of supported protocols with the ecosystem built atop BitVM, a system that allows smart contracts to be executed on the Bitcoin network.
Although the firm’s valuation wasn’t disclosed, the fresh capital is expected to bolster Bitlayer’s development of its Web3 platform, which operates atop BitVM, a system enabling smart contracts in the Bitcoin ecosystem.
Commenting on the funding, BMAN, managing partner of ABCDE Capital, explained that Bitlayer’s unique position in accumulating over $500 million in total locked value with approximately 300 projects underscores its pivotal role in the Bitcoin network.
“As it realizes native verification on Bitcoin, Bitlayer will become the first native Bitcoin layer-2, a seminal moment in the history of Bitcoin,” BMAN added in a Tuesday press release.
With the fresh capital, Bitlayer wants to expand its ecosystem by supporting the Web3 protocols built specifically within it. Additionally, the funds will go toward developing Bitlayer’s Mainnet-V2, a Bitcoin-native rollup in which layer-2 state transition is “guarded by a Bitcoin-friendly proof system that combines both ZK and fraud proofs,” the press release reads.
In February, crypto-focused venture capital giant Pantera Capital projected that the Bitcoin-based ecosystem of the decentralized finance sector could accumulate hundreds of billions of dollars in liquidity through Web3 protocols, particularly if it achieves similar market shares as those on the Ethereum blockchain.
Historically, decentralized applications on Ethereum have constituted between 8% and 50% of its market cap, with a current figure of around 25%. Based on these proportions, Pantera Capital estimates Bitcoin could see an influx of approximately $225 billion in value.
In the release, the startup revealed that Stake Capital Group, WAGMI Ventures, Skyland Ventures, and GSR Ventures, among others, also supported the funding.
