Bitcoin is increasingly becoming the financial asset, and opportunities now open up for holders. There is a case at hand of Elastos, a Web3 infrastructure provider, closing its $20 million round of investment.It would certainly be a more aggressive move in the integration of decentralised finance services into the Bitcoin network to create new possibilities for users and define the future of decentralised finance.
Understanding Elastos and Its Bitcoin DeFi Solution.
Elastos is the company working to bring decentralised finance (DeFi) features to Bitcoin. In the second quarter of 2024, it will launch a Bitcoin DeFi system that lets users use their Bitcoin as security and connect with smart contracts based on Ethereum. Such impact would imply that users would be able to make swaps and other DeFi operations directly with their Bitcoin and hence would expand its utility more than a mere store of value.
The $20 million investment round.
Elastos recently raised its $20 million investment round in financing, with a sponsor in the house, none other than Rollman Management Digital—the global investment network that was recently known to bankroll Ripple and Ethereum, among others. Indeed, Elastos is already an important holding among Rollman, and such sizeable funding appears to boost trust in its quest to take the Bitcoin-based DeFi solution into the mainstream market.
An evolving Bitcoin DeFi ecosystem
Elastos is not the only project trying to bring DeFi functionality to Bitcoin. Other layer-2 projects include Stacks, RSK, and Babylon, which already have established ecosystems native to Bitcoin. These solutions allow Bitcoin users to be able to use DeFi applications for investors. Recently, crypto exchange Binance also collaborated with Babylon to offer staking services with BTC and, therefore, increased the DeFi services for BTC holders.
The Rise of Bitcoin-Centric Financial Services.
There is a necessary need for financial services centred on Bitcoin as it becomes more institutionalised. Since early 2024, the rise of Bitcoin as an investment asset has achieved great popularity with the approval of Bitcoin ETFs. US Bitcoin ETFs now account for over $124 billion in assets, demonstrating increased institutional interest. This will give rise to new DeFi strategies, using Bitcoin as collateral in decentralised finance platforms, with more ways of using Bitcoin beyond the simple buy-and-hold strategy.
Conclusion
The investment round by Elastos into $20 million underscores the rising demand for Bitcoin DeFi solutions. As institutionalisation grows with Bitcoin, innovative financial products will keep popping up, and ways in which Bitcoin will be used are simply unimaginable. For Bitcoin holders and
