- In a seed round, Multicoin Capital, OKX Ventures, and other investors contributed $7 million to Arch Labs.
- In order to directly integrate “bridgeless” trade into the Bitcoin blockchain, the project is developing a platform for Bitcoin-native applications.
In a seed investment round, Arch Labs, the group behind the Bitcoin native application platform Arch, has raised $7 million.
For the venture capital firm, Multicoin Capital led the round in an unusual Bitcoin transaction. According to Arch on Thursday, Tangent, Big Brain Holdings, CMS Holdings, Portal Ventures, and OKX Ventures were among the other investors in the round.
According to Matt Mudano, co-founder of Arch, the round was swiftly concluded in April after gathering funds in March owing to “extraordinary” investor interest. Without providing a valuation, Mudano stated that the round was set up as a simple agreement for future equity (SAFE) with token warrants.
With the ability to bring “bridgeless” trading straight to the Bitcoin blockchain, Arch bills itself as the first Bitcoin-native application platform. Mudano stressed that Arch is an application platform that is native to Bitcoin and not a Bitcoin Layer 2 network like dozens of others.
According to Mudano, the majority of Layer 2s are made to bridge assets to a side chain where users are compelled to give up custody and trust assumptions in order to increase scalability or bring lower cost models on top of the current blockchains through extra layers. In order to utilize programmable Bitcoin-based assets, Arch does not require takers to bridge assets to an L2.
He went on to say that the primary distinction between Arch and other Bitcoin L2s is user custody.
Applications may be deployed on Arch “quite easily,” according to Mudano. According to Mudano, Rust is a more approachable programming language than Bitcoin script and is utilized by Solana, who also uses it to build the ArchVM. He said ArchVM draws a lot of inspiration from Solana.
According to Mudano, users will find it simple to interact with Arch-based applications regardless of the Bitcoin wallet they choose. According to him, using apps on Arch does not require downloading unique wallets or bridging components. This enhances the user experience and significantly lowers friction.
Mudano stated that around 20 stealth-stage projects spanning stablecoins, decentralized exchanges, borrow/lend markets, and more are expanding on Arch’s devnet. Several projects inside the Bitcoin ecosystem have already begun to migrate to Arch.
A public devnet will be the next step in the Arch deployment, and somewhere in the second part of this year, the mainnet will open.
According to Mudano, there will be an incentive points program in place at that time to highlight the first batch of applications developed and released on Bitcoin and aid in the ecosystem’s bootstrapping.
The Arch Foundation also intends to provide award programs and an upcoming hackathon to support the Bitcoin ecosystem.
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