In a significant move for the future of DeFi on Bitcoin, Elastos has secured a $20 million investment from Rollman Management, positioning itself as a key utility layer for the world’s first cryptocurrency.
Elastos, known for its pioneering work in decentralized web infrastructure, aims to leverage this funding to scale its ecosystem, which includes the development of its ELA token, the introduction of a native Bitcoin DeFi protocol called BeL2, and the expansion of Elacity, a Web3 data marketplace for creators.
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Since 2018, ELA tokens are merge-mined with Bitcoin, enhancing security and miner revenue, aligning with decentralized network ideals, and supporting Elastos’ DeFi initiatives.
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BeL2, launching Q2 2025, allows Bitcoin holders to collateralize their BTC in personal wallets for Ethereum smart contract functions like minting stablecoins, swaps, and P2P borrowing, using locking scripts, zero-knowledge proofs, oracles, and an arbiter network where ELA holders can earn BTC fees.
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Elacity, after a successful pilot where a creator earned $5,600 in a day, will evolve into a platform for creators to tokenize and sell content directly, introducing channels, subscriptions, and possibly AI market tokenization.
Elastos’ founder, Rong Chen, emphasized the role of Bitcoin’s consensus in empowering Web3 utilities, stating, “Leveraging Bitcoin’s trillion-dollar consensus to empower Web3 users with scalable utilities—that’s where Elastos comes in.” This investment not only fuels technological advancements but also aims at reorienting Elastos’ branding and marketing to establish it as a leader in the Bitcoin-native DeFi space.
Elastos operates under the Cyber Republic Consensus (CRC), a governance model that reflects community interests through a delegate-based system. This model allows ELA holders to participate in governance, elect council members, and influence the direction of the platform, reinforcing its commitment to decentralization and transparency.
With Bitcoin’s market cap exceeding $2 trillion, Elastos seeks to address DeFi’s liquidity and security needs while tapping into Bitcoin’s established network. This move positions Elastos among a growing cohort of projects aiming to unlock Bitcoin’s potential for DeFi, competing in a space where integrating Bitcoin’s security with DeFi’s functionality could be transformative.
Elastos’s ELA token has a market cap of approximately $48.5 million. It is secured by nearly 50% of Bitcoin’s hash rate, highlighting its deep integration with the Bitcoin ecosystem.
