Singapore-based Bitlayer Labs, the first Bitcoin Layer 2 based on the BitVM paradigm, has announced raising $11 million in its Series A funding round, bringing its total funding to date to $16 million.
The round was co-anchored by US-based investment firm Franklin Templeton and crypto-focused venture capital investor ABCDE. A host of other investors, including Stake Capital Group, Skyland Ventures, GSR Ventures, and WAGMI Ventures, also participated in the funding round.
Bitlayer Labs is the first Bitcoin Layer 2 infrastructure project to receive strategic investment from an ETF-licensed institution, per the announcement. Franklin Templeton is one of the issuers of a spot bitcoin exchange-traded fund in the US.
Franklin Templeton Digital Assets has been active in the digital asset ecosystem since 2018, building blockchain-based technology solutions, developing a range of investment strategies, and running node validators.
“This Series A funding from some of the most respected entities in the blockchain space validates our mission to make breakthroughs in the Bitcoin ecosystem,” said Bitlayer Labs co-founder Charlie Hu.
The startup seeks to achieve Bitcoin finality and establish a Bitcoin security-equivalent native Layer 2, Hu added.
Founded in 2023, Bitlayer seeks to address the trade-off between security and Turing completeness in BTC Layer 2 through cryptographic innovations and blockchain protocol engineering.
BTC Layer 2 refers to a set of technologies built on top of the Bitcoin blockchain to enhance its scalability, speed, and functionality.
Bitlayer said it will use the fresh funds to expand its ecosystem, including supporting the number of native Web3 protocols built within the ecosystem.
The investment in Bitlayer comes as venture investors have been increasingly drawn to the solutions, protocols, and applications that are dedicated to improving the efficiency and capabilities of the Bitcoin blockchain network.
A report published by Austin, Texas-based Trammell Venture Partners in April showed that Bitcoin-native firms saw a 69.2% year-on-year (YoY) growth in deal count in 2023, with pre-seed stage firms in particular tracking a 360% YoY surge in transaction count.
