According to founder and CEO Alexei Zamyatin, Interlay’s objective is to bring its interBTC product to all major blockchains, including Polkadot, Ethereum, and Cosmos.
Interlay, a Bitcoin (BTC) interoperability project debuted on Polkadot, has raised $3 million in a seed round to build its main decentralized finance product further, marking another significant capital raise in the blockchain industry.
Interlay’s interBTC platform, which allows users to invest, earn, and pay using Bitcoin on any blockchain, will benefit from the funding. InterBTC will spread to other blockchains, including Ethereum (ETH) and Cosmos, after being initially commissioned for Polkadot.
After winning funding from Web3 Foundation, a technology steward for the decentralized web, Interlay began building its Bitcoin bridge in early 2020.
Interlay says that its interBTC product is backed entirely by Bitcoin in a one-to-one ratio. Because Bitcoin reserves are held in collateralized vaults, anyone can manufacture interBTC by locking their Bitcoin or running their vault. In addition, the product is believed to be insured, implying that users can switch back to Bitcoin at any time.
IOSG Ventures led the seed round, including Blockchain.com, Launchub Ventures, CMS Holdings, KR1, Hypersphere, and Zeeprime. Jihan Wu, co-founder of Bitmain, and Peter Smith, CEO of Blockchain.com, are among the angel investors.
“Connecting Polkadot and Bitcoin securely and efficiently is the first strategic move for Interlay,” said Xinshu Dong, a partner at IOSG Ventures, who recognized robust and decentralized infrastructure as an important enabler 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, thanks in part to parachain and parathread technologies, which are meant to connect disparate networks.