Arch Labs has closed a $13 million Series A funding round at a $200 million valuation.
The funding round was led by Pantera Capital with participation from other strategic investors.
The funds will now aim to accelerate the development and launch of the ArchVM, which enables “fully verifiable smart contract-like functionality on Bitcoin.”
Bitcoin holds over $2 trillion in asset value, yet the only ways to leverage it for anything other than payments are “through centralized applications and exchanges or by bridging assets to Layer-2 networks, which creates additional hurdles and risks.”
Arch aims to harness and extend Bitcoin’s security and liquidity “by enabling decentralized applications and protocols native to Bitcoin’s ecosystem.”
With Arch, developers can deploy “interoperable smart contract-like programs directly on Bitcoin.”
These programs can tap into Bitcoin’s liquidity while providing “a simpler and more secure user experience than bridge-based alternatives since assets are settled on the base layer and maintain communication with other assets on Bitcoin.”
The Arch architecture has three core components:
- A specialized Arch VM handling state changes and complex off-chain computations that enables Turing-complete smart contracts at the Bitcoin base layer and provides Solana-like TPS.
- A Decentralized Validator Network that facilitates seamless coordination and finality for smart contracts, using Proof-of-Stake consensus to create an economic security model that allows for scalable, permissionless decentralization of the validator set.
- A cryptographic multisig, built on the back of the first-ever implementation of FROST + ROAST signature schemes, allowing for secure, decentralized key aggregation and multi-party computation.
Matt Mudano, CEO of Arch Labs said:
“The potential of Bitcoin has always been immense, but its programmability has remained limited by design. With Arch, we’re introducing a solution that respects Bitcoin’s foundational principles while significantly expanding its capabilities. Our focus on liquidity, user experience, and security makes Arch uniquely positioned to unlock Bitcoin’s full potential as a programmable financial system.”
This funding round comes as Arch Labs prepares “for the upcoming launch of the Arch Network mainnet this summer.”
The network will enable developers to “create smart contracts, deploy DeFi protocols, mint and trade NFTs, and establish DAOs.”
At launch, it will feature a range of applications, “including AMM swaps, lending platforms, Bitcoin-backed stablecoins, and games.”
Franklin Bi, General Partner at Pantera Capital, said:
“By introducing smart contract functionality directly into Bitcoin’s Layer 1, Arch creates a pivotal execution platform enhancing Bitcoin’s existing framework instead of splitting its liquidity and potential. This strategic addition allows Bitcoin to tap into areas of blockchain utility—such as dApps and programmable contracts—where it had previously ceded ground to Ethereum and Solana.”
Previously, Arch Labs raised $7 million “led by Multicoin Capital with participation from Portal Ventures, OKX Ventures, Big Brain Holdings, CMS Holdings, and Tangent.”