Elastos secures $20M to expand Bitcoin DeFi services
Elastos (CRYPTO:ELA), a Web3 infrastructure provider, has successfully closed a $20 million investment round aimed at enhancing decentralised finance (DeFi) services on the Bitcoin (CRYPTO:BTC) network.
The funding was announced on January 30, with Rollman Management Digital leading the investment.
This firm has previously backed notable blockchain projects like Ripple (CRYPTO:XRP) and Ethereum (CRYPTO:ETH), indicating confidence in Elastos' potential.
The investment will support the development of BeL2, a protocol designed to enable Bitcoin users to collateralise their holdings and access Ethereum smart contracts for various DeFi activities.
Elastos launched its Bitcoin DeFi protocol in the second quarter of 2024, marking a significant step toward integrating advanced financial applications on Bitcoin.
The BeL2 protocol allows users to perform swaps and other functions while keeping their BTC secure within the Bitcoin network.
As Elastos continues to innovate, it joins other players in the space, such as Stacks and RSK, which have established Bitcoin-native ecosystems.
The recent surge in Bitcoin's total value locked (TVL) in DeFi applications has exceeded $7.2 billion, reflecting growing interest from institutional investors.
This uptick follows the approval of spot Bitcoin exchange-traded funds (ETFs) in early 2024, which currently hold over $124 billion in net assets.
Jacob Phillips, co-founder of BTC staking protocol Lombard, noted that the increasing institutionalisation of Bitcoin is paving the way for novel DeFi strategies using Bitcoin as collateral.
With regulatory clarity on the horizon due to changes at the US Securities and Exchange Commission, confidence among investors is expected to rise.
At the time of reporting, the Elastos (ELA) price was $2.03 and the Bitcoin (BTC) price was $104,531.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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