Bitcoin News Today: Bitcoin DeFi Platform BOB Raises $21M to Bridge BTC with Ethereum Ecosystem

Build on Bitcoin (BOB), a platform focused on unlocking native Bitcoin (BTC) DeFi capabilities, has raised $21 million to further develop its hybrid Layer 2 infrastructure and bridge Bitcoin with Ethereum-based DeFi protocols [1]. The funding, which includes $9.5 million in a recent round, was co-led by Castle Island, Anchorage, and Amber Group, bringing renewed attention to the potential of BTC in decentralized finance [1]. As of August 7, 2025, BOB reported a total value locked (TVL) of $212 million, with $132.2 million in DeFi TVL and a user base of over 553,000 [1].

The project is designed as a hybrid chain, combining the security of Bitcoin with the flexibility of Ethereum’s DeFi ecosystem. It leverages the OP Stack as an Ethereum rollup while also integrating with Babylon for Bitcoin finality through staked BTC. This hybrid structure aims to facilitate trust-minimized bridging without requiring users to wrap or custody their native BTC [1].

A key component of BOB’s infrastructure is BitVM2, the latest iteration of Bitcoin virtual machine technology. It enables fraud proofs on the Bitcoin mainnet, allowing users to interact with DeFi applications using native BTC without losing control of their assets. This approach contrasts with traditional BTC DeFi methods that rely on wrapped tokens like wBTC or centralized custodians [1].

With this new funding, BOB plans to launch BTC-staked finality by the end of 2025, further cementing its role in connecting Bitcoin to the broader smart contract ecosystem [1]. The project also announced the integration of zero-knowledge (ZK) proofs in a recent upgrade, enhancing scalability and privacy for its users [1].

The funding round and BOB’s technological advancements reflect growing investor confidence in native BTC DeFi. Historically, DeFi innovation has been concentrated on Ethereum, but the increasing capital flows into Bitcoin-based solutions suggest a shift toward diversifying the DeFi landscape. As Bitcoin’s price reached over 115,000 USDT as of August 6, 2025, the market environment appears favorable for projects aiming to expand Bitcoin’s utility beyond its traditional role as a store of value [2].

Despite the momentum, BOB will need to navigate regulatory uncertainty and user adoption challenges as it scales its infrastructure. However, with institutional backing and a clear technological roadmap, the platform is positioned to play a pivotal role in the evolution of native BTC DeFi.

Source:

[1] Cointelegraph, https://cointelegraph.com/news/bitcoin-defi-startup-bob-raises-21m-castle-island-anchorage-invest

[2] The Economic Times, https://m.economictimes.com/crypto-news-today-live-06-aug-2025/liveblog/123126163.cms