Bitcoin News Today: Bitcoin DeFi Startup BOB Secures $21M as Institutional Interest Grows

Build on Bitcoin (BOB), a Bitcoin-based decentralized finance (DeFi) startup, has secured $21 million in strategic funding as of July 2025, with $9.5 million raised in a single round in December 2024. The funding round attracted notable institutional investors such as Castle Island Ventures and Anchorage Digital, marking a significant step forward for the project and reflecting growing institutional interest in Bitcoin-based DeFi infrastructure [1]. The increased financial backing comes at a time when the Bitcoin ecosystem is exploring ways to expand beyond its role as a store of value and into functional financial applications.

BOB is developing a Layer-2 blockchain network that combines the security of Bitcoin with the programmability and scalability features typically associated with Ethereum’s DeFi ecosystem. The project utilizes a hybrid model, functioning as both a Bitcoin-secured network and an Ethereum rollup, leveraging the OP Stack and Babylon for finality. This dual integration aims to create a robust infrastructure where native Bitcoin can be used directly in DeFi applications without the need for wrapping or custody [1].

According to Dominik Harz, BOB’s chief technology officer, the company’s next major milestone is the deployment of the BitVM bridge into production. Once live, this bridge will allow native Bitcoin to be used in DeFi protocols on BOB and facilitate cross-chain transfers to other smart contract platforms. Future upgrades are expected to include BTC-secured bridges to chains such as Solana, Ethereum, and Sui [1]. The ultimate goal is to enable seamless, trust-minimized interactions between Bitcoin and a broader range of DeFi protocols while preserving the core principles of Bitcoin security and decentralization.

The latest funding round saw many existing investors increasing their commitments, with new strategic partners like Anchorage and Amber Group joining the effort. Nic Carter, a founding partner of Castle Island, emphasized the firm’s continued belief in Bitcoin’s role as the foundation of DeFi and highlighted BOB as a “marquee L2” in this space [1]. This institutional support not only provides critical capital but also signals a broader shift in how the crypto industry is viewing Bitcoin’s role in the future of decentralized finance.

As of the latest data, BOB’s testnet is live and supported by partners such as Lombard, Amber Digital, and RockawayX. A mainnet launch is scheduled for the fourth quarter of 2025. The project’s Total Value Locked (TVL) stands at $212 million, with DeFi TVL at $132.2 million and over 553,000 users. These metrics indicate a growing user base and increasing engagement with the platform’s offerings.

The emergence of native Bitcoin DeFi is seen as a key development in the evolution of the Bitcoin ecosystem. Unlike traditional Bitcoin DeFi solutions that rely on centralized custodians or wrapped tokens such as wBTC and tBTC, BOB’s BitVM2 technology enables direct interaction with native BTC in DeFi applications through trust-minimized mechanisms [1]. This innovation, co-authored by BOB co-founder Alexei Zamyatin, allows for practical fraud proofs on Bitcoin, enhancing the security and usability of cross-chain interactions.

The recent developments underscore the potential for Bitcoin to transition from a digital store of value to a programmable asset within the broader DeFi landscape. While still in its early stages, the Bitcoin DeFi movement is gaining momentum, with projects like BOB playing a pivotal role in shaping its future. The continued support from institutional investors suggests that this trend is likely to accelerate, particularly as technical advancements and user adoption continue to grow.

Source: [1] Bitcoin-DeFi startup BOB raises $21M as Castle Island, Anchorage invest

https://cointelegraph.com/news/bitcoin-defi-startup-bob-raises-21m-castle-island-anchorage-invest