Bitlayer, a leading protocol bringing smart contract capabilities to Bitcoin, has announced a landmark partnership with three of the world’s largest Bitcoin mining pools Antpool, F2Pool, and SpiderPool marking a significant milestone in the evolution of Bitcoin-native decentralized finance (DeFi).
According to a post on Bitlayer’s official X account on May 27, the collaboration enables Bitlayer to move from concept to large-scale adoption by leveraging the combined power of these mining giants, which together control nearly 40% of Bitcoin’s total hashrate.
Enabling Non-Standard Transactions Through Mining Support
At the heart of this advancement is BitVM, Bitlayer’s smart contract architecture designed to operate within Bitcoin’s native ecosystem. BitVM relies on non-standard transactions (NSTs) technically valid Bitcoin transactions that are often not relayed due to Bitcoin Core’s default settings.
With Antpool, F2Pool, and SpiderPool now committed to processing these NSTs, BitVM becomes functionally deployable, allowing smart contracts to operate securely and without requiring changes to the Bitcoin base layer. This resolves one of the key hurdles to bringing scalable DeFi to Bitcoin.
Unlocking Bitcoin-Powered DeFi
Through the BitVM Bridge, users can transfer Bitcoin to smart contract platforms in a non-custodial manner, minting Peg-BTC a Bitcoin-backed token that can be used across various DeFi applications. This infrastructure allows for:
- Lending
- Yield farming
- Multi-chain staking
Without altering Bitcoin’s protocol or compromising on its core security, Bitlayer provides access to DeFi tools previously exclusive to networks like Ethereum.
Rapid Ecosystem Expansion
Bitlayer’s platform has seen exponential growth since launching its mainnet in April 2024, now boasting a total value locked (TVL) of $413 million, according to DeFiLlama. It already supports over 200 Bitcoin DeFi applications and is integrated with ecosystems including Sui, Arbitrum, Base, and Starknet.
In addition to strategic technical growth, Bitlayer has attracted strong financial backing, raising over $20 million across funding rounds. A Series A round was led by Franklin Templeton, followed by a round led by Polychain Capital. The company is now working to onboard new validators and integrate with popular wallets like Xverse and Binance Wallet to support broader adoption.
Bringing Bitcoin into the DeFi Era
The collaboration with top mining pools not only improves BitVM’s operability but also aligns with Bitlayer’s vision of making Bitcoin a programmable asset in decentralized ecosystems. By leveraging existing Bitcoin infrastructure and broadening its functionality through off-chain computation, Bitlayer bridges the gap between Bitcoin’s security and modern DeFi utility.
This move sets the stage for a new chapter in Bitcoin’s utility not just as digital gold, but as the backbone of decentralized finance.
Disclaimer: This article is for informational purposes only and does not constitute financial advice.
