The future of Bitcoin DeFi is here. BOB (Build on Bitcoin) has officially launched native BTC on its BitVM testnet, marking a pivotal leap in bringing unwrapped, trustless Bitcoin into decentralized finance. Unlike wrapped BTC solutions that rely on centralized custodians or multisig schemes, BOB’s approach preserves Bitcoin’s native integrity while enabling it to participate directly in DeFi protocols. This breakthrough is backed by ten leading institutions—P2P.org, Lombard, Solv Protocol, Amber Group, Ankr, RockawayX, Fiamma, UTXO Management, Luganodes, and SatLayer—signaling strong industry validation and accelerating the practical deployment of BitVM technology.
Scheduled for mainnet rollout in Q4 2025, the BitVM bridge represents a foundational shift in how Bitcoin interacts with multi-chain ecosystems. By leveraging fraud-proof mechanisms and a hybrid Layer2 architecture, BOB ensures that BTC remains secure, censorship-resistant, and fully interoperable—without compromising decentralization.
The Significance of Native BTC in DeFi
Bitcoin holds over $1 trillion in dormant value. Yet, its utility has long been limited to store-of-value use cases due to technical constraints. Most existing DeFi platforms rely on wrapped versions of BTC (like WBTC or renBTC), which introduce counterparty risk and dependency on third-party custodians.
BOB changes this paradigm by introducing native BTC into DeFi through BitVM, an innovative protocol that enables off-chain computation with on-chain security guarantees. This means users can now deploy their actual BTC—unchanged and unmediated—into yield-generating applications, lending markets, and synthetic asset platforms across BOB’s ecosystem.
👉 Discover how native BTC is unlocking trillion-dollar liquidity in DeFi
This advancement aligns with growing demand for trustless interoperability—a core principle of Web3. With BOB, Bitcoin isn’t just a passive asset; it becomes an active participant in a broader financial network, all while maintaining its foundational security model.
How the BitVM Bridge Works
At the heart of BOB’s innovation lies the BitVM bridge, a fraud-proof two-way mechanism that allows BTC to move between Bitcoin and BOB without custodial risk. Here’s how it’s different:
- Fraud-Proof Security via “1-of-N” Model: Instead of requiring all validators to act honestly (as in multisig models), BitVM only needs one honest participant to detect and challenge fraudulent activity. This dramatically reduces trust assumptions.
- Data Availability via Ethereum: Rather than bloating the Bitcoin blockchain with data storage, BOB leverages Ethereum’s cheaper and more scalable data layer. This maintains anti-censorship properties similar to Ethereum L2s like Arbitrum or Base.
- Role Specialization: Operators handle computation, while Liquidity Providers (LPs) supply BTC for withdrawals. This separation lowers capital requirements and enables institutional participation through tailored roles.
- Collateral Reuse: Drawing from research by Citrea and CommonPrefix, BOB allows operators to reuse BTC collateral across multiple BitVM instances, significantly boosting scalability and capital efficiency.
These architectural improvements make BOB not just another sidechain, but a hybrid L2 that combines Bitcoin’s security with Ethereum’s execution flexibility.
Industry Support Accelerates Adoption
The involvement of ten major players in the BitVM testnet marks a turning point in real-world BitVM adoption. These organizations span infrastructure providers, liquidity networks, and DeFi innovators—all contributing node operations and technical feedback to refine the system.
Notably, this is the first time entities outside the BitVM Alliance have run BitVM infrastructure, proving its viability beyond theoretical development. Their participation validates the robustness of the protocol and paves the way for wider institutional integration.
“Our vision has always been to place Bitcoin at the center of DeFi,” said Alexei Zamyatin, Co-Founder of BOB and Founding Member of the BitVM Alliance. “With BitVM, we’re making that possible—using native Bitcoin secured by the Bitcoin network itself, with no need to trust third parties.”
Zamyatin also predicted an upcoming explosion in Bitcoin DeFi, driven by the infrastructure now being built. “We’re unlocking trillions in latent liquidity across multi-chain ecosystems,” he added.
Strategic Partnerships Fuel Ecosystem Growth
Key partners are already aligning their missions with BOB’s vision:
- Solv Protocol sees BOB’s testnet as a critical step toward unleashing institutional-grade yields on native Bitcoin. “BitVM offers a trustless path to BTC DeFi,” said Ryan Chow, Co-Founder and CEO of Solv Protocol. “Our goal is to bring full-stack Bitcoin-native yield into the mainstream—and BOB proves it’s achievable.”
- P2P.org emphasizes Bitcoin’s potential beyond digital gold. “We believe Bitcoin should be the foundation of DeFi,” said Artemiy Parshakov, VP of Institutional Business at P2P.org. “BOB’s BitVM bridge solves the trust bottleneck that’s held back BTC DeFi. It’s the missing piece for unlocking trillions in value.”
Other supporters—including Amber Group, Ankr, and RockawayX—are contributing expertise in liquidity provisioning, node infrastructure, and cross-chain interoperability.
👉 See how top institutions are integrating native BTC into next-gen DeFi
What Is BOB? A Hybrid L2 Redefining Bitcoin’s Role
BOB (Build on Bitcoin) is not a traditional sidechain or rollup. It’s a hybrid Layer2 network designed specifically to make Bitcoin the cornerstone of decentralized finance. By merging Bitcoin’s unmatched security and vast capital reserves with Ethereum’s rich DeFi tooling and developer ecosystem, BOB creates what many call the “BTC DeFi Home.”
Its unique model eliminates reliance on third-party bridges. Instead, it uses BitVM to create trust-minimized connections between Bitcoin, Ethereum, and other L1s—keeping liquidity consolidated around BTC rather than fragmented across chains.
Backed by top-tier investors like Castle Island Ventures, Coinbase Ventures, Ledger Cathay Ventures, and IOSG, BOB is positioned at the forefront of the Bitcoin renaissance in DeFi.
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👉 Learn how hybrid L2s are transforming Bitcoin into an active financial asset
Frequently Asked Questions (FAQ)
Q: What is native BTC, and how is it different from wrapped BTC?
A: Native BTC refers to actual Bitcoin used directly in DeFi without wrapping or tokenization. Unlike wrapped BTC (e.g., WBTC), which requires custodians and introduces counterparty risk, native BTC operates trustlessly via protocols like BitVM—preserving decentralization and security.
Q: When will the BitVM bridge launch on mainnet?
A: The BitVM bridge is currently live on testnet and is scheduled for mainnet release in Q4 2025.
Q: How does BOB ensure security when moving BTC off-chain?
A: BOB uses the BitVM protocol with a fraud-proof “1-of-N” challenge system. As long as one honest validator exists, malicious activity can be detected and penalized—eliminating the need for trusted intermediaries.
Q: Why use Ethereum for data availability instead of Bitcoin?
A: Ethereum offers lower-cost, high-throughput data publishing compared to Bitcoin. This design choice improves scalability while maintaining censorship resistance—similar to how Optimism or Arbitrum operate.
Q: Can any institution run a BitVM node?
A: Yes. The participation of non-Alliance members in the testnet shows that BitVM infrastructure is open and accessible. Institutions can contribute as operators or liquidity providers based on their expertise.
Q: What makes BOB a hybrid L2?
A: BOB combines Bitcoin’s security and capital with Ethereum’s execution environment. It leverages Ethereum for data availability but settles disputes on Bitcoin via BitVM—blending the strengths of both networks.
With native BTC now active on testnet and major players onboard, BOB is setting the stage for a new era where Bitcoin plays an active role in decentralized finance—not as a shadow asset, but as the foundation.