Bitfinity Network Secures $12M to Bring EVM Compatibility and Advanced DeFi to Bitcoin
Bitfinity Network, a cutting-edge Bitcoin layer-2 (L2) solution, has officially launched with $12 million in funding to integrate Ethereum Virtual Machine (EVM)-compatible decentralized finance (DeFi) functionality into the Bitcoin ecosystem. Utilizing the Internet Computer Protocol (ICP) Chain Fusion technology, Bitfinity aims to expand Bitcoin’s utility beyond a store of value, enabling Bitcoin-native assets to operate seamlessly in an Ethereum-compatible ecosystem.
Funding and Institutional Backing
The $12 million funding includes $7 million from institutional investors such as Polychain’s Beacon Fund, ParaFi, Draft Ventures, and Warburg Serres. An additional $5 million was raised through OTC token sales, driven by community contributions and grassroots support.
A Bitfinity spokesperson shared:
“With institutional Bitcoin ETFs on the horizon and enhanced accessibility for institutions, we are pioneering a scalable side-chain infrastructure to unlock cross-chain functionality and broaden Bitcoin’s applications.”
This funding will accelerate the adoption and development of the Bitfinity Network, positioning it as a key player in Bitcoin’s DeFi evolution.
Revolutionizing Bitcoin with ICP’s Chain Fusion
Bitfinity leverages ICP’s Chain Fusion Technology to connect Bitcoin to Ethereum-like ecosystems. This integration allows Bitcoin-native assets to operate with the scalability and programmability of EVM-compatible blockchains.
With Bitcoin recently breaking $92,000, demand for innovative solutions that extend Bitcoin’s functionality is growing rapidly. Bitfinity’s L2 platform aims to address this demand by enabling scalable, secure, and efficient DeFi operations.
Security Enhancements and DApp Ecosystem
Bitfinity’s security architecture is bolstered by a proof-of-stake protocol enhanced by ICP’s Chain-Key Technology, which supports large signing committees to execute Schnorr and ECDSA transactions. This approach delivers stronger security compared to traditional multi-signature systems commonly used by L2 networks.
Bitfinity plans to host a growing suite of decentralized applications (DApps), including Sonic, Chapswap, Lendfinity, and Omnity Bridge. Additionally, backing from the founder of Liquity, a billion-dollar TVL borrowing and lending protocol, hints at future introductions of similar solutions on Bitfinity’s platform.
ICP Adoption Sees Explosive Growth
The Internet Computer’s usage has skyrocketed, with Chain Fusion technology experiencing a 1,230% increase in utilization year-over-year, according to a report by The Dfinity Foundation. This growth is attributed to BTC-native applications such as Rainbow Protocol, Tap Protocol, and Bitfinity, which leverage ICP to deploy smart contracts and advanced functionalities on the Bitcoin network.
Dfinity highlighted that Chain Fusion enables direct interaction with the Bitcoin network, eliminating the need for trusted bridges. This innovation underpins Bitfinity’s mission to enhance Bitcoin’s programmability while maintaining its inherent security and decentralization.
The Future of Bitcoin’s DeFi Ecosystem
With its robust funding, institutional support, and ICP-driven technology, Bitfinity Network is poised to redefine Bitcoin’s role in the DeFi ecosystem. As the platform scales, it promises to unlock new cross-chain functionalities, making Bitcoin more versatile and accessible than ever before.
