Bitlayer, a Bitcoin layer-2 network, recently announced that it has raised a total of $16 million, with $11 million coming from its Series A funding round at a $300 million valuation. This significant investment was led by Franklin Templeton, a well-known investment management firm, and ABCDE. Bitlayer has also attracted other investors, including Framework Ventures, Stake Capital Group, WAGMI Ventures, and more.
The funding will be used by Bitlayer to support its expansion plans and enhance its Bitcoin Layer 2 network, which is based on the Bitcoin Virtual Machine (BitVM) system. This system ensures a high level of security equivalent to Bitcoin itself. Bitlayer’s mainnet V1 was launched in April and has already attracted over 200 projects, making it the leading Bitcoin scaling project with over $550 million in total value locked.
The team at Bitlayer is currently working on Mainnet-V2, a Bitcoin-native rollup that will secure the Layer 2 state transition using a Bitcoin-friendly proof system combining ZK and fraud proofs. Kevin He, Co-Founder of Bitlayer, emphasized the importance of addressing existing issues in technology and public perception to drive mass adoption of Bitcoin. He believes that Bitlayer’s cost and performance advantages will unlock significant potential value for Bitcoin in the future.
Bitlayer’s success reflects the ongoing evolution of the Bitcoin ecosystem, with developments like Ordinals transforming the network into a platform that supports a wide range of digital assets. The involvement of prominent institutional investors like Franklin Templeton signals a growing interest in Bitcoin infrastructure projects and highlights the increasing importance of layer-2 solutions in scaling the Bitcoin network.
Overall, Bitlayer’s strategic investment from Franklin Templeton and other investors underscores the growing confidence in Bitcoin layer-2 technologies and paves the way for further innovation and development in the cryptocurrency space. As the industry continues to evolve, projects like Bitlayer play a crucial role in expanding the capabilities and reach of Bitcoin, ultimately driving its adoption and utility in the mainstream financial landscape.