Quick take:
The fundraising was executed via a simple agreement for future equity with token warrants.
The company will use the funds to accelerate the development of its Bitcoin-native platorm for bridgeless trading.
Arch is planning a mainnet launch in the second half of 2024 ahead of its public devnet rollout.
Arch, a Bitcoin-native application enabling bridgeless trading on the Bitcoin blockchain has completed a $7 million seed round led by Multicoin Capital. The fundraising also attracted participation from Portal Ventures, OKX Ventures, Big Brain Holdings, CMS Holdings and Tangent, Arch said in a statement.
The fundraising was executed via a simple agreement for future equity (SAFE) with token warrants, Matt Mudano, co-founder of Arch told The Block. The company will use the capital to accelerate the development of its Bitcoin-native app for bridgeless trading, which Mudano insists is not a Bitcoin layer-2.
“Most Layer 2s are designed to enhance scalability or introduce lower fee models on top of the existing blockchains via additional layers by bridging assets to a side chain where users are forced to sacrifice custody and trust assumptions,” Mudano said. “Arch doesn’t force takers to bridge assets to an L2 to leverage programmable Bitcoin-based assets.”
According to Mudano, what differentiates Arch and other L2 is user custody. According to Mudano, Arch enables users to easily engage with applications on its platform no matter which crypto wallet they use. “There is no need to bridge assets or download special wallets to engage with applications on Arch,” he said.
With the platform’s virtual machine, ArchVM completely built in Rust, the same programming language used by Solana, it enables developers to easily master the Bitcoin script, allowing them to deploy applications seamlessly.
According to Mudano, his company has already attracted the attention of more than 20 stealth-stage projects across stablecoins, Dexes, crypto lending platforms, and more, which have started migrating to Arch.
The company is planning a mainnet launch in the second half of 2024 ahead of its public devnet rollout.
“At that time, there will be an incentivised points program to help bootstrap the ecosystem and showcase the first cohort of applications to build and launch on Bitcoin,” Mudano said.
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The post Arch Labs Secures $7M Seed Round to Bring Bridgeless Trading to Bitcoin Blockchain appeared first on NFTgators .
