Web3 infrastructure provider Elastos has successfully closed a $20-million investment round, marking a significant step in expanding decentralized finance (DeFi) services within the Bitcoin (BTC) ecosystem. The funding, announced on January 30, came from Rollman Management Digital, a global investment network known for backing early blockchain projects like Ripple and Ethereum. With this investment, Elastos has become one of Rollman’s top five holdings.
Elastos introduced its Bitcoin DeFi protocol in the second quarter of 2024, allowing BTC holders to collateralize their assets and access Ethereum smart contracts for swaps and other DeFi functions. This initiative positions Elastos alongside other major players in Bitcoin DeFi, such as layer-2 solutions Stacks, RSK, and Babylon, which are actively building Bitcoin-native financial ecosystems.
The broader Bitcoin DeFi market continues to gain momentum. As of January 30, Bitcoin’s total value locked (TVL) in DeFi applications exceeded $7.2 billion, according to DefiLlama. Binance has also expanded its Bitcoin DeFi offerings, recently announcing BTC staking through Babylon, further integrating Bitcoin into the DeFi landscape.
The institutionalization of Bitcoin is accelerating, driven by the approval of spot BTC exchange-traded funds (ETFs) in early 2024. U.S. Bitcoin ETFs currently hold more than $124 billion in net assets, according to CoinGlass, with renewed buying interest emerging in early January, fueled by expectations of a pro-crypto Trump administration.
Further regulatory developments could enhance confidence in Bitcoin’s role within DeFi. The nomination of pro-crypto Paul Atkins to chair the U.S. Securities and Exchange Commission is expected to encourage more institutional investors to enter the space, fostering growth in Bitcoin-centric financial services.
Jacob Phillips, co-founder of BTC staking protocol Lombard, highlighted the potential for Bitcoin’s expanding role in DeFi, stating that “novel DeFi strategies will emerge across the risk curve with Bitcoin as a collateral asset.”