Polychain, Franklin Templeton Back Bitlayer's $9M Funding

The Bitcoin layer-2 startup Bitlayer has successfully extended its Series A funding round, securing additional capital to support its upcoming Bitlayer v2 release. This extension brings the total funding for the startup to $25 million.

Funding Details

• Bitlayer raised an additional $9 million from existing investors Franklin Templeton and Polychain Capital.
• Other participants in this funding round included SCB Limited, Selini Capital, and G-20 Group.
• The startup is known for its OpVM solution, which integrates fraud proofs (BitVM) and validity proofs (using OP_CAT) to enhance verification capabilities for Bitcoin’s base layer.

Bitlayer’s Progress and Future Plans

• The mainnet for Bitlayer was launched in April 2024, and the platform has generated nearly $900 million in fees in September alone, with a total value locked of $380.7 million.
• The newly acquired funds will aid in the launch of Bitlayer v2.

Franklin Templeton's Interest in Bitcoin Yield

• In a prior discussion, Bitlayer’s co-founder Charlie Hu revealed that Franklin Templeton is exploring ways to unlock yield for its clients through digital assets, particularly within the Bitcoin ecosystem.
• Franklin Templeton reportedly holds $500 million in Bitcoin exposure and is looking to enhance yield opportunities for its clients.
• Currently, both parties are in the exploration stage of a potential collaborative project focused on Bitcoin staking and ecosystem development.

Collaborative Efforts

• Hu mentioned that several Bitlayer ecosystem partners, including Lorenzo, Satlayer, Lombard, and Apro Protocol, have recently received investments from Franklin Templeton, indicating a growing partnership between the two entities.