Fast Facts
- Arch Labs has secured $13 million in Series A funding, valuing the company at $200 million, to enhance Bitcoin’s capabilities through the ArchVM for secure and verifiable smart contracts.
- Arch aims to leverage Bitcoin’s security and liquidity by enabling decentralized applications natively on Bitcoin, unlocking functionalities like programmable multisigs, lending markets, and stablecoins.
- The Arch Network’s mainnet launch is planned for this summer, allowing developers to create smart contracts and various decentralized finance applications without relying on Layer-2 solutions or bridging assets.
- Pantera Capital, a pioneer in blockchain investment, supports Arch’s initiative to integrate smart contract functionality directly into Bitcoin’s Layer 1, enhancing its utility and competitive edge against Ethereum and Solana.
Arch Labs Secures $13M to Launch Bitcoin Virtual Machine
New York City, New York, April 22, 2025 — Arch Labs has announced the successful closure of a $13 million Series A funding round, boosting its valuation to $200 million. This round received major backing from Pantera Capital and included strategic investors. The funding will expedite the development of the ArchVM, which promises to deliver smart contract-like capabilities directly on the Bitcoin network.
Bitcoin currently boasts over $2 trillion in asset value. However, users face limitations in leveraging Bitcoin beyond transactions. Most options involve centralized applications or complex bridging to Layer-2 networks, which introduce risks. Arch Labs aims to enhance Bitcoin’s inherent security and liquidity by enabling decentralized applications inherently within its ecosystem.
The ArchVM will introduce features previously unavailable on Bitcoin. It will support programmable multi-signatures, allow cross-program invocations, and enable the permissionless creation of Bitcoin-native financial tools like lending markets and decentralized exchange platforms. So far, Arch Labs has completed over 50 million test transactions on its testnet and plans to launch the mainnet this summer.
"The potential of Bitcoin has always been immense, but its programmability has remained limited by design," said Matt Mudano, CEO of Arch Labs. He emphasized that Arch introduces a solution that respects Bitcoin’s foundational principles while greatly expanding its capabilities. This focus on liquidity, security, and user experience distinguishes Arch in the evolving tech landscape.
Arch’s architecture comprises three pivotal components. First, the specialized Arch VM facilitates efficient state changes and complex computations, enabling Turing-complete smart contracts. Second, a Decentralized Validator Network ensures smooth coordination and finality using Proof-of-Stake consensus. Lastly, a cutting-edge cryptographic multisig secures decentralized key management and multi-party computations.
The funding aligns with Arch Labs’ plans to launch a range of applications, allowing developers to create smart contracts, deploy decentralized finance (DeFi) protocols, mint and trade non-fungible tokens (NFTs), and establish decentralized autonomous organizations (DAOs). Initially, users can expect functions like automated market maker swaps, lending platforms, and Bitcoin-backed stablecoins.
Franklin Bi, General Partner at Pantera Capital, commented, "By introducing smart contract functionality directly into Bitcoin’s Layer 1, Arch creates an essential execution platform that enhances Bitcoin’s existing framework." This shift allows Bitcoin to engage in areas like decentralized applications, which have traditionally been dominated by competitors.
Arch Labs previously raised $7 million, showcasing solid support from various investors, including Multicoin Capital.
With Arch Labs leading the charge to transform Bitcoin into a fully programmable ecosystem, the technology could redefine how users interact with digital currencies, offering greater flexibility and security in the financial realm. For further details, visit Arch Network and Pantera Capital.
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This content is for informational and entertainment purposes only and does not constitute financial or investment advice. Cryptocurrency is highly speculative and carries significant risk, including the potential loss of your entire investment. Do not make financial decisions based on this information. Consult a licensed financial advisor before investing. This site does not offer, sell, or advise on cryptocurrency, securities or other regulated financial products in compliance with SEC and applicable laws. Please do your own research and seek professional advise.
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