Bitlayer: Leading the Next Era of Bitcoin DeFi
If you’re new to Bitcoin Finance (BTCFi) and want the complete picture, Bitlayer’s story is worth knowing. This emerging force in BTCFi is reimagining Bitcoin from a passive store of value into an income-generating asset. By leveraging Bitcoin’s unmatched security, Bitlayer enables new DeFi opportunities. With major institutions and public companies like Franklin Templeton, which holds roughly $500M in BTC and is exploring yield strategies demand is surging for solutions that allow Bitcoin holders to earn returns. Bitlayer is tackling this multi-billion-dollar market with a secure, scalable BTCFi infrastructure focused on speed, composability, and decentralization.
Market Potential: BTCFi unites Bitcoin’s security with DeFi’s flexibility, creating a significant growth opportunity. Bitlayer is positioned to capture this momentum by meeting the growing appetite for yield among BTC holders.
Core Tech: Bitlayer integrates two core innovations the trust-minimized BitVM Bridge and the high-performance Bitlayer Network rollup alongside its native YBTC (a 1:1 BTC-backed yield token), delivering real utility to the Bitcoin DeFi landscape.
Trust-Minimized Bridge: The BitVM Bridge locks BTC into smart contracts where malicious actions can be challenged by honest actors. Live on mainnet since 2025, it’s one of the first operational BitVM-based bridges. Unlike centralized custodians, it enables BTC to enter DeFi as YBTC a fully backed, transparent token that can be staked, lent, borrowed, traded, and used to provide liquidity.
High-Speed Rollup: The Bitlayer Network is a Bitcoin Layer-2 rollup using BitVM fraud proofs and a proof-of-stake sequencer. It offers EVM compatibility, near-instant confirmations, and final settlement anchored to Bitcoin’s Proof-of-Work. This architecture allows Bitcoin DeFi to scale without compromising security.
Strategic Growth
Bitlayer’s bridge and rollup are connected with major Layer-1s like Sui, Base, Arbitrum, and Cardano, as well as protocols like Plume. Partnerships with top Bitcoin mining pools Antpool, F2Pool, and SpiderPool enable real-time BitVM execution. These integrations bring YBTC to where liquidity is strongest.
Funding & Backing
Bitlayer raised $9M in 2024 from Polychain Capital and Franklin Templeton, adding to prior rounds for a total of $25M from leading VCs including Framework Ventures, StarkWare, and OKX Ventures. This backing signals strong institutional belief in Bitcoin-native yield models.
Community & Incentives
Campaigns like the Booster Program (30M BTR reward pool) and the Pre-TGE subscription on Binance Wallet encourage early adoption. These programs reward engaged users and help grow Bitlayer’s base ahead of its public token launch.
The Big Picture
Bitlayer’s dual-stack architecture BitVM Bridge plus Bitcoin rollup delivers secure, scalable infrastructure that moves BTCFi from concept to reality. With live mainnet components, deep ecosystem ties, and institutional support, Bitlayer is helping shift Bitcoin from “digital gold” to a programmable, yield-producing asset at the heart of decentralized finance.