Build on Bitcoin (BOB), a Layer 2 blockchain network, has raised $21 million in strategic funding to expand its efforts in unlocking native Bitcoin DeFi. The latest round brought in $9.5 million and included participation from existing backers like Castle Island and new investors such as Anchorage, Amber Group and Sats Ventures.
The platform aims to bridge Bitcoin with DeFi protocols directly, without relying on traditional wrapped tokens or custodial solutions. It plans to use a hybrid infrastructure combining Bitcoin’s security with Ethereum’s smart contract capabilities.
Investor Confidence Grows
Castle Island, one of BOB’s earliest supporters, has doubled down on its investment. Founding partner Nic Carter explained that the firm remains confident in Bitcoin’s role in DeFi and sees BOB as a key player in making that vision a reality.
“We continue to believe that Bitcoin will be the bedrock of DeFi, and we think BOB will be a marquee Layer 2,” Carter said in a statement to Cointelegraph.
Since December 2024, BOB has raised a total of $21 million. This strategic funding will go towards advancing its core technologies and expanding its ecosystem.
BitVM Bridge to Enable Native BTC in DeFi
Dominik Harz, BOB’s chief technology officer, revealed that the company’s next major milestone is launching the BitVM bridge into production. This bridge will allow users to use native Bitcoin directly in DeFi protocols on the BOB network, eliminating the need for custodial services or wrapped BTC.
BOB’s upcoming BTC-staked finality feature, expected by the end of 2025, will further enhance trustless Bitcoin integration across multiple chains including Solana, Ethereum and Sui.
According to Harz, “Users, institutions, apps and wallets everywhere will be able to access native BTC DeFi via BOB.”
Hybrid Layer 2 Infrastructure
BOB’s unique architecture combines the stability and decentralisation of Bitcoin with the programmability of Ethereum. The network operates as part of the Ethereum Superchain using the OP Stack and is simultaneously secured by Bitcoin through its integration with Babylon.
This dual-chain approach enables BOB to support Bitcoin-based finality while functioning as an Ethereum rollup. As of now, BOB has a total value locked (TVL) of $212 million, with $132.2 million locked in DeFi applications and more than 553,000 users on the platform.
Beyond Wrapped Tokens
Historically, Bitcoin DeFi has depended on custodial wrapped assets like wBTC, tBTC and HBTC, which required users to exchange real BTC for a tokenised version held by third-party custodians. These models often introduced centralisation risks and reduced user control.
BOB aims to solve this with BitVM2, an improved version of BitVM, co-authored by BOB co-founder Alexei Zamyatin. BitVM2 introduces practical fraud proofs that allow users to bridge Bitcoin to BOB securely and trustlessly without wrapping or custodial involvement.
This technology enables direct use of native BTC in decentralised finance applications, bringing Bitcoin users closer to the Ethereum-style DeFi experience while maintaining the core values of the Bitcoin network.
Mainnet Launch and Future Plans
BOB’s testnet is already live and supported by key partners including Lombard, Amber Digital and RockawayX. A full mainnet launch is planned for the fourth quarter of 2025.
With new capital and growing institutional backing, BOB aims to become a major player in decentralised finance, offering Bitcoin holders a secure, decentralised alternative to custodial solutions and wrapped tokens.
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