BitLayer Leads Bitcoin DeFi... TVL $800 Million [CryptoBriefing]

[Financial News] "The 'Bitcoin Virtual Machine (BitVM) Bridge' supports the use of Bitcoin across various blockchain networks. Through this, we will further activate smart contracts (conditional automatic contract execution) and decentralized finance (DeFi) on the Bitcoin blockchain."

Charlie Hu (photo), co-founder and CEO of BitLayer, a company developing the Bitcoin Virtual Machine, said in an interview with us on the 17th, "The BitVM Bridge has already completed the code audit process in collaboration with the world's top security audit firms." DeFi is a system that allows individuals to use financial services directly through blockchain technology without going through intermediaries like banks or securities firms. Bitcoin DeFi means financial services that allow the use of Bitcoin for deposits, loans, and derivatives trading without a central management institution. Users can deposit Bitcoin to earn interest or provide it as collateral to borrow funds. To overcome the limitations of the Bitcoin blockchain, which does not directly support smart contracts like the Ethereum blockchain, the BitVM Bridge has been developed to activate the potential liquidity of the Bitcoin ecosystem. CEO Hu emphasized, "The BitVM Bridge enables the safe transfer of Bitcoin assets to various blockchains and decentralized apps (dApps)."
After introducing the core network (mainnet) of the BitVM Bridge, BitLayer achieved a total value locked (TVL) of $800 million and recorded 10 million transactions in a short period. Through cooperation with major virtual asset wallet companies such as OKX Wallet, Binance Wallet, Trust Wallet, and Bitget, actual DeFi users were also attracted.
Additionally, it is expanding the Bitcoin DeFi ecosystem by integrating with various blockchains, including Sui. CEO Hu said, "Bitcoin has been a store of value, but its usability was limited," and added, "To solve this, we connected Bitcoin liquidity to various ecosystems and enabled users to generate profits using 'YBTC'." YBTC is a token whose value is linked 1:1 with Bitcoin.
BitLayer has also achieved a total of $25 million in investment from Franklin Templeton and Polychain Capital. It is also preparing financial services for institutions in the future. CEO Hu said, "The virtual asset industry is currently experiencing a very exciting period," and added, "After the listing of the Bitcoin spot exchange-traded fund (ETF), major institutions have entered the market by investing in virtual asset companies and significantly increasing their Bitcoin holdings." He continued, "BitLayer aims to become a trusted Bitcoin yield provider for institutions."
BitLayer is also accelerating the expansion of the governance token (BTR) ecosystem. Staking (deposit rewards) through BTR tokens is a representative example. CEO Hu said, "BTR will play an important role in the growth of the BitLayer ecosystem as a strategic means to involve ecosystem partners, validators, and liquidity providers."
BitLayer plans to introduce features such as securing the security of Bitcoin proof-of-work, real-time transaction confirmation, and an escape hatch function through network upgrades in the future. The escape hatch function allows users to safely withdraw assets to Bitcoin even if the blockchain (L2 protocol) is suspended or unresponsive.
CEO Hu also presented a vision for Bitcoin scalability. He said, "Bitcoin is being held more widely and has institution-friendly characteristics, so it can support more financial innovations such as loans, derivatives, and insurance in the future," and emphasized, "Bitcoin DeFi can grow into an institutional-grade ecosystem that attracts millions of users and billions of dollars in liquidity to Bitcoin."
Meanwhile, CEO Hu is scheduled to present a new technological vision for the Bitcoin DeFi ecosystem as a speaker at the main event 'Impact (KBW2025:IMPACT)' of the 'Korea Blockchain Week 2025 (KBW2025)' held at the Walkerhill Hotel & Resort in Seoul on the 23rd and 24th of next month.
elikim@fnnews.com Mihee Kim, Reporter