Berlin-based crypto infrastructure startup BOB has raised a €9.5 million strategic round to build a hybrid Layer 2 chain that lets users earn yield on native BTC without custodians or wrapped tokens
This most recent strategic round brought in new backers including Anchorage, Amber Group, and Sats Ventures, while also seeing increased commitments from previous investors such as Castle Island Ventures – which led the earlier €8.6 million Seed round – as well as Ledger, RockawayX, Asymmetric, IOSG Ventures, UTXO Management, Daedalus, CMS, Bankless Ventures, Hypersphere, Alliance, and Sigil/Zeeprime. These follow on from a €1.3 million angel round raised in early 2023 from undisclosed crypto-native investors.
This results in a total of €18 million across a series of funding rounds since December 2024.
Alexei Zamyatin, BOB Co-founder and BitVM Core Contributor, said: “The fact that we continue to attract new partners and so many of our original investors have doubled down speaks volumes to the work our team has done to define Bitcoin’s central role in DeFi. With the string of recent developments and tier 1 partners choosing BOB to support their Bitcoin strategies, we’re demonstrating what’s possible with BOB’s unique Hybrid model, bringing together the strengths of Bitcoin and Ethereum to redefine Bitcoin’s role in DeFi.”
Founded in in 2024 in Germany, BOB operates with a distributed team across Europe and North America. The company has deliberately kept a low profile through its research and development phase, and is now stepping into the spotlight as it approaches mainnet launch.
The funds raised will accelerate the development of BOB’s hybrid chain infrastructure, expand ecosystem integrations, and support institutional adoption.
As the Gateway to Bitcoin DeFi, BOB intends to be the easiest and safest place to earn with Bitcoin. Its Hybrid Chain model combines the strengths of the Bitcoin and Ethereum networks, which means all apps, assets and transactions are secured by billions of dollars of staked BTC. Additionally, BOB will operate BTC-secured bridges to Ethereum and other chains, providing a gateway to earn yield on Bitcoin across multiple chains.
Recently, BOB launched native Bitcoin DeFi on its testnet with the support of leading institutions and DeFi protocols including Lombard, Amber Digital and RockawayX. This development, powered by BOB’s BitVM bridge, will make native BTC, not wrapped representations, available to their extensive Bitcoin DeFi ecosystem once it goes live on mainnet.
Alongside this, BOB also says they became the first hybrid ZK rollup, dramatically reducing cost and increasing efficiency for optimistic rollups by leveraging Zero-Knowledge technology for fraud disputes. Additionally, BOB’s integration with Fireblocks enhances institutional access to Bitcoin DeFi by combining Fireblocks’ secure wallet infrastructure with BOB’s network.
Nic Carter, Founding Partner at Castle Island Ventures, said: “We believe in the enormous potential of Bitcoin DeFi and see BitVM as the best path forward for trustless BTC deposits and withdrawals. BOB is the only Layer 2 implementing both BitVM for trustless deposits and Bitcoin finality via staked Bitcoin for Bitcoin-secured DeFi transactions. We’re excited to increase our investment and support BOB’s mission to build the gateway to Bitcoin DeFi.”
While the startup is still in the process of updating its public-facing materials – including a LinkedIn page and team listing – it is preparing for broader visibility as it nears mainnet release.
