Arch Raises $7M Led By Multicoin Capital To Build The First Bitcoin-Native Application Platform
New York, New York, May 9th, 2024, Chainwire
Arch Raises $7M Led By Multicoin Capital To Build The First Bitcoin-Native Application Platform
ArchVM Enables Bridgeless Applications On Bitcoin, The World’s Largest And Most Secure Blockchain
HONG KONG, MAY 8, 2024 — Arch Labs, the inventors of Arch, a Bitcoin-native application platform that unlocks bridgeless decentralized finance (DeFi) on the world’s largest blockchain, today announced a $7M series seed round led by Multicoin Capital with participation from Portal Ventures, OKX Ventures, Big Brain Holdings, CMS Holdings, Tangent, Cypher, Newman Capital and more. The company plans to use the funds to hire additional core developers, help launch the Arch Network into mainnet in H2 2024 and continue to support its burgeoning app ecosystem.
The combination of the Taproot upgrade in November 2021, which introduced smart contract-like functionality to the Bitcoin blockchain through Schnorr signatures, Merkelized Abstract Syntax Trees (MAST) and Tapscript, and the advent of Ordinals in January 2023, which pioneered inscriptions of arbitrary data directly into Bitcoin transactions, paved the way for turing-complete applications on Bitcoin. Since then, the prospect of programmability on Bitcoin has spurred renewed interest in the world’s most secure blockchain, creating a surge of development activity including now over 50 Bitcoin “Layer 2 Networks.” While designed to leverage Bitcoin, these networks require takers to bridge assets to nascent networks, weakening the user experience and going against the core ethos of Bitcoin users in order to engage in DeFi on Bitcoin. Standing in contrast to them, Arch is the first bitcoin-native application platform; it brings bridgeless trading directly to the Bitcoin blockchain and does not require takers to bridge.
“Ordinals marked a foundational shift in Bitcoin’s evolution. It signaled the beginning of a new era where Bitcoin could serve as more than just a payment ledger; it could leverage its strength and security to also be the canonical base layer for complex protocols. This moment paved the way for Arch. We’re building on Bitcoin’s unmatched security and liquidity to unlock an entirely new application ecosystem on the world’s more secure and liquid blockchain,” said Matt Mudano, the co-founder of Arch.“
The Arch Network is a parallelized, proof-of-stake network that uses zk-proofs to enhance Bticoin-native programmability. The network consists of a Rust-based zkVM, called the ArchVM, and a decentralized verifier network. Together, these components form a trustless execution environment directly within the Bitcoin blockchain that allows for bridgeless trading experiences. Arch not only preserves the security and liquidity of Bitcoin but also significantly enhances its capabilities, enabling rapid, secure, and fully-verifiable applications on Bitcoin for the first time.
“We’ve evaluated several Bitcoin Layer 2’s and all of them make the same set of trade offs that sacrifice security in exchange for speed. Arch is explicitly not a Layer 2 in the sense that takers do not have to bridge assets to some untrusted chain to use it. Bitcoin developers are excited to build on Bitcoin because it’s the most secure blockchain in the world. If they wanted speed, they would build on another network like Solana. Arch gives principled, Bitcoin-aligned users and developers the only way to build Bitcoin-native experiences without takers having to sacrifice custody of assets to a less secure, less decentralized Layer 2,” said Vishal Kankani, Investment Principal, Multicoin Capital. “Once the market appreciates this, we expect the vast majority of Bitcoin development activity to rapidly shift to Arch. Arch transforms Bitcoin from a store of value to a robust platform where a wide array of dApps—from finance to gaming and beyond—can thrive.”
Several projects within the Bitcoin ecosystem have already started migrating to Arch. Liquidium, the premier borrowing and lending marketplace on Bitcoin, recently started incorporating liquidity pools leveraging Arch to support both instant-liquidity loans and fungible-token pools, something that Bitcoin, even Discrete Log Contracts (DLCs), are incapable of natively supporting. Currently, there are more than 20 stealth stage projects, across stablecoins, decentralized exchanges, borrow/lend markets and more, building on Arch’s devnet. As excitement around Bitcoin grows, the Arch Foundation plans to support the ecosystem through upcoming hackathon and grant programs.
To start building bridgeless applications on Bitcoin, or to learn more about Arch, please visit https://www.arch.network. ###
About Arch
Arch is the first Bitcoin-native application platform—unlocking bridgeless DeFi on the world’s largest blockchain. The Arch Network is a parallelized, proof-of-stake network that uses zk-proofs to enhance Bticoin-native programmability. The network consists of a Rust-based zkVM, called the ArchVM, and a decentralized verifier network. Together, these components form a trustless execution environment directly within the Bitcoin blockchain that allows for bridgeless trading experiences. To learn more about Arch, please visit https://www.arch.network
About Arch Labs
Arch Labs is a software development company focused on building innovative products and solutions that leverage the Arch Network, Bitcoin’s first native application platform. Arch Labs is a core contributor to Arch Network and works closely with the Arch Foundation to advance crypto innovation on the Bitcoin blockchain. To learn more about Arch Labs, please visit https://www.archnetwork.xyz/.
About Multicoin Capital
Multicoin Capital is a thesis-driven investment firm that invests in cryptocurrencies, tokens, and blockchain companies. Crypto networks and companies will create trillions of dollars of value over the next decade. But investing in tokens is fundamentally different than investing in companies. New tools, heuristics, and security measures are needed to responsibly invest in this ecosystem. We leverage our deep understanding of blockchain technology and crypto markets to deliver exceptional returns. For more information, visit: https://multicoin.capital.
