Bitcoin News Today: BOB Secures $9.5M in Strategic Investment to Advance Bitcoin DeFi

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Thursday, Aug 7, 2025 9:50 am ET1min read
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Aime RobotAime Summary

- BOB, a Bitcoin-based DeFi project, raised $9.5M in a strategic funding round, totaling $21.1M with participation from major investors like Anchorage and Amber Group.

- The project combines Bitcoin and Ethereum ecosystems via staked BTC-secured smart contracts, leveraging BitVM and Bitcoin finality to position itself as a leading Layer 2 solution.

- Funds will develop BTC-collateralized bridges and hybrid EVM chains, aiming to expand Bitcoin’s utility beyond value storage through yield-generating DeFi applications.

- The investment highlights growing convergence between Bitcoin and Ethereum infrastructure, signaling increased institutional confidence in Bitcoin-based DeFi innovation.

BOB, a project developing decentralized finance (DeFi) solutions based on

Bitcoin
, has secured $9.5 million in a strategic investment round, bringing its total funding to $21.1 million. The round included existing investors such as Castle Island Ventures, Ledger Cathay Fund, RockawayX, Asymmetric, and others, with new strategic backers including Anchorage, Amber Group, and Sats Ventures joining the effort [1]. Castle Island Ventures had previously led BOB’s initial $10 million seed round, while the project had earlier raised $1.6 million in an angel investment round [1].

According to Nic Carter, co-founder of Castle Island Ventures, the firm believes Bitcoin DeFi holds significant promise and that BOB’s implementation of BitVM and Bitcoin finality through staked BTC positions it as a leading Layer 2 project. “BOB is the only Layer 2 project to implement both BitVM and Bitcoin finality via staked Bitcoin,” he stated [1].

The funding will be used to advance BOB’s hybrid model, which aims to merge the benefits of Bitcoin and

Ethereum
networks, with applications and transactions secured through staked BTC. The project also plans to develop BTC-collateralized bridges, enabling Bitcoin to earn yields across multiple blockchain ecosystems [1].

Despite being in its early stages, BOB is already positioned as one of the next-generation Bitcoin Layer 2 initiatives. It operates as a hybrid EVM chain connected to Bitcoin via multi-signature bridges, though it does not yet offer a fully trustless Layer 2 structure similar to traditional Ethereum rollups [1].

BOB’s approach reflects growing interest in expanding Bitcoin’s utility beyond its role as a store of value. By leveraging staked Bitcoin to secure smart contract environments, the project aims to introduce new use cases and liquidity mechanisms for the world’s largest cryptocurrency. The investment underscores the potential of Bitcoin-based DeFi and highlights the increasing convergence between Bitcoin and Ethereum-centric infrastructure.

Source:

[1] A Project Developing Decentralized Finance (DeFi) Solutions Based on Bitcoin Has Raised Millions of Dollars in Investment! Here Are the Deta... (https://coinmarketcap.com/community/articles/6894ab7b6f5f5e27bc004143/)