Bitcoin-DeFi startup, Build on Bitcoin (BOB), has secured an impressive $21 million in fresh funding, marking a significant milestone in its quest to revolutionize the decentralized finance landscape with native Bitcoin. The funding round, which closed on August 7, 2025, saw participation from notable investors including Castle Island Ventures and Anchorage Digital, signaling strong institutional confidence in BOB’s vision.
Uncharted Territory for Bitcoin
BOB’s mission is ambitious—unlocking the potential for native Bitcoin DeFi through a novel bridge and hybrid layer-2 infrastructure. While Ethereum and other blockchains have long dominated the DeFi space, BOB aims to bring Bitcoin, the original cryptocurrency, into the fold. This new funding will be pivotal in developing the critical infrastructure needed to support decentralized applications and financial services directly on the Bitcoin network. This follows BOB’s previous funding success, as detailed in our article on Bitcoin DeFi Project BOB Raises Another $9.5M to Build BTC DeFi Infrastructure.
According to industry insiders, the introduction of a bridge that facilitates seamless interaction between Bitcoin and DeFi platforms could be a game-changer. “Bitcoin has always been seen as digital gold, but with the right tools, it could become a financial powerhouse in its own right,” said crypto analyst Jenna Morris. She added that the participation of significant players like Castle Island and Anchorage is a testament to the potential they see in Bitcoin’s DeFi future.
The Mechanics of Bitcoin DeFi
At the heart of BOB’s approach is a hybrid layer-2 infrastructure, designed to address scalability issues and high transaction fees that have plagued Bitcoin. By leveraging this technology, BOB aims to provide a faster and more cost-effective way for users to engage with DeFi services using their Bitcoin holdings. The bridge technology will allow Bitcoin holders to access DeFi protocols without converting their BTC into wrapped tokens on other blockchains—a process that often incurs additional risks and fees.
Castle Island’s involvement is particularly noteworthy given its reputation for identifying and backing transformative blockchain projects. “We’re excited about the possibilities that BOB’s infrastructure opens up,” said Castle Island partner, Matt Walsh. “Bitcoin’s liquidity and security combined with DeFi’s innovative use cases could redefine what’s possible in the financial landscape.”
A Market Ready for Transformation
The timing of this development is intriguing. As of 2025, the cryptocurrency market continues to evolve, with increasing interest in solutions that blend Bitcoin’s stability and DeFi’s flexibility. This convergence could attract a new wave of institutional investors and retail users looking for secure yet innovative financial products. For a deeper dive into the regulatory implications, see our coverage of the SEC’s latest guidance.
However, challenges remain. The crypto market, notorious for its volatility, requires robust systems to ensure security and user trust. “It’s a double-edged sword,” noted blockchain strategist Alex Kim. “On one hand, Bitcoin DeFi could democratize finance, but on the other, it needs to maintain the rigorous security standards that Bitcoin is known for.”
Looking Ahead
As BOB moves forward with its plans, questions linger about the broader implications of native Bitcoin DeFi. Will it manage to attract the liquidity and developer talent necessary to compete with established DeFi platforms on Ethereum? And crucially, can it maintain Bitcoin’s revered security while adding the flexibility needed for DeFi?
The answers to these questions will shape not only BOB’s future but also the evolution of the DeFi sector as a whole. As crypto enthusiasts and skeptics alike watch closely, one thing is certain: BOB’s journey will be a fascinating one to follow. (And who knows, maybe it’ll even change the game.)
Source
This article is based on: Bitcoin-DeFi startup BOB tops up funding to $21M as Castle Island, Anchorage join
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
