Arch Secures $7 Million In Funding from Multicoin Capital to Create the First Bitcoin-Focused Application Platform

New York, New York, May 9th, 2024, Chainwire

Arch Secures $7 Million Investment from Multicoin Capital to Develop First Bitcoin-Centric Application Platform

ArchVM Facilitates Applications Without Bridging on Bitcoin, Recognized as the Largest and Most Secure Blockchain Globally

HONG KONG, MAY 8, 2024 — Arch Labs, the creators behind Arch, a Bitcoin-oriented application platform that enables decentralized finance (DeFi) without the need for bridges on the largest blockchain, proudly announced that they have secured $7 million in a seed funding round led by Multicoin Capital with support from Portal Ventures, OKX Ventures, Big Brain Holdings, CMS Holdings, Tangent, Cypher, Newman Capital, and others. The funding will be utilized to onboard additional developers, facilitate the Arch Network's launch on the mainnet by the second half of 2024, and foster the growth of its emerging app ecosystem.

The integration of the Taproot upgrade in November 2021, which brought smart contract-like abilities to the Bitcoin blockchain via Schnorr signatures, Merkelized Abstract Syntax Trees (MAST), and Tapscript, along with the introduction of Ordinals in January 2023, allowing for the inscription of diverse data directly into Bitcoin transactions, has led to the possibility of complex applications on Bitcoin. This has ignited a resurgence of interest in Bitcoin, the world's most secure blockchain, triggering a wave of development with over 50 Bitcoin 'Layer 2 Networks' now in existence. However, these networks necessitate that users bridge assets to new infrastructures, diminishing the experience and conflicting with the fundamental principles of Bitcoin users engaging with DeFi on Bitcoin. In contrast, Arch emerges as the pioneering Bitcoin-native application platform that brings seamless trading straight to the Bitcoin blockchain without the need for bridging assets.

According to Matt Mudano, co-founder of Arch, 'Ordinals represented a pivotal change in the evolution of Bitcoin. It heralded a new age wherein Bitcoin transcended its original role as a mere payment ledger; it now has the potential to utilize its unparalleled security and strength as the foundational layer for intricate protocols. This groundwork laid the foundation for Arch. Our aim is to capitalize on Bitcoin’s unmatched security and liquidity to unveil a completely new ecosystem of applications on the most secure and liquid blockchain available.'

The Arch Network operates as a parallelized, proof-of-stake system that harnesses zk-proofs to bolster Bitcoin-native programmability. Comprising a Rust-based zkVM known as ArchVM and a decentralized verification network, these elements combine to create a trustless execution environment directly integrated within the Bitcoin blockchain, enabling seamless trading experiences without bridges. Arch not only safeguards Bitcoin's intrinsic security and liquidity but also significantly amplifies its functional capacities, paving the way for rapid, secure, and fully verifiable applications on Bitcoin for the first time.

Vishal Kankani, Investment Principal at Multicoin Capital, stated, 'We've reviewed numerous Bitcoin Layer 2 solutions, and they invariably involve trade-offs that compromise security for the sake of speed. Arch is deliberately not a Layer 2 solution because it allows users to operate without transferring assets to an untrustworthy chain. Developers are eager to create on Bitcoin due to its unmatched security. If expedience were a priority, they'd opt for networks like Solana. Arch provides principled users and developers aligned with Bitcoin’s ethos a unique opportunity to create Bitcoin-native experiences without relinquishing asset custody to a less secure and decentralized Layer 2 solution.' He believes that once the market recognizes this advantage, a significant portion of Bitcoin's development activity will rapidly migrate to Arch, which transforms Bitcoin from a mere store of value into a dynamic platform that supports a wide variety of decentralized applications ranging from finance to gaming and beyond.

A number of projects within the Bitcoin landscape have begun transitioning to Arch. Liquidium, the leading borrowing and lending protocol within Bitcoin, has recently started leveraging Arch for its liquidity pools to facilitate both instant liquidity loans and fungible token pools, a functionality that Bitcoin, including Discrete Log Contracts (DLCs), cannot support natively. Presently, over 20 stealth-stage projects spanning across stablecoins, decentralized exchanges, and lending markets are developing on Arch’s development network. As enthusiasm for Bitcoin escalates, the Arch Foundation is set to bolster the ecosystem with upcoming hackathons and grant programs.

For those interested in developing bridgeless applications on Bitcoin or wishing to find out more about Arch, please navigate to https://www.arch.network. ### 

About Arch 

Arch stands as the pioneering Bitcoin-native application platform—unlocking bridgeless decentralized finance on the largest blockchain of its kind. The Arch Network operates as a parallelized, proof-of-stake network utilizing zk-proofs to enhance programmability on Bitcoin. This infrastructure includes a Rust-based zkVM, referred to as ArchVM, and a decentralized network of verifiers. Collectively, these components establish a trustless execution environment existing directly within the Bitcoin blockchain, providing seamless trading experiences. For additional details on Arch, visit https://www.arch.network.

About Arch Labs 

Arch Labs is a software development firm dedicated to creating groundbreaking products and solutions that harness the Arch Network, recognized as Bitcoin’s inaugural native application platform. As a crucial contributor to the Arch Network, Arch Labs collaborates closely with the Arch Foundation to drive forward innovations within the crypto realm on the Bitcoin blockchain. Learn more about Arch Labs at https://www.archnetwork.xyz.

About Multicoin Capital

Multicoin Capital operates as a thesis-driven investment firm focused on cryptocurrencies, tokens, and blockchain enterprises. The expectation is that crypto networks and companies will generate trillions of dollars in value within the next ten years. Nevertheless, investing in tokens diverges fundamentally from investing in traditional companies. New methodologies, heuristics, and security measures are essential for making responsible investments in this ecosystem. We attribute our exceptional returns to our strong grasp of blockchain technology and crypto market dynamics. For further information, explore: https://multicoin.capital.

Contact

CEO
Matt Mudano
Arch Network