Interlay, a Bitcoin (BTC) interoperability initiative that debuted on Polkadot, has raised $3 million in seed investment to further build its main decentralized financial product, becoming another significant capital raising in the blockchain sector.
Interlay’s interBTC platform, which lets customers to deposit, receive, and pay using Bitcoin on any blockchain, will benefit from the funding. InterBTC will extend to other blockchains, like Ethereum (ETH) and Cosmos, after it was first commissioned for Polkadot.
Interlay began developing its Bitcoin bridge in early 2020 after getting funding from Web3 Foundation, a technology administrator for the decentralized web, according to Cointelegraph.
Interlay says that their interBTC product is backed entirely by Bitcoin in a one-to-one ratio. Because Bitcoin reserves are held in collateralized vaults, anybody may mint interBTC by locking their Bitcoin or running their own vault. The item is supposed to be insured, implying that consumers can switch back to Bitcoin at any moment.
IOSG Ventures headed the seed investment, which included Blockchain.com, Launchub Ventures, CMS Holdings, KR1, Hypersphere, and Zeeprime. Jihan Wu, co-creator of Bitmain, and Peter Smith, CEO of Blockchain.com, are among the angel investors.
Interlay’s initial bold objective is to connect Polkadot and Bitcoin effectively and reliably, according to Xinshu Dong, an associate at IOSG Ventures, who sees “powerful and decentralized infrastructure” as a driving force for multi-chain ecosystems.
The rise of multi-chain networks is a significant development in the blockchain sector. Polkadot has risen to the forefront of multi-chain development, partly due to parachain and parathread technologies, which are intended to connect different networks.