Interlay, Polkadot’s newly created Parachain Network (DOT), is close to completing a two-year project to develop a Bitcoin (BTC) bridge on Polkadot with the announcement of the launch of the Kusama sandbox.
In addition, Interlay has integrated Bitcoin (wBTC) digital assets, known as kBTC, into the Canary Kintsugi parachain. The asset is already available for trading on other pair chains Polkadot Karura operated by Acala and Moonriver operated by Moonbeam.
Interlay is expected to roll out its technology to both Cosmos and Ethereum over the next year to improve interoperability across chains.
Alexey Zamyatin, co-founder and CEO of Interlay stated:
“Ethereum is worth $ 14 billion with DeFi bitcoins controlled by a handful of central guards behind KYC with no sanctuary for users or DApps if something goes wrong. Even the big players like Maker, Compound and Aave have tacit confidence in a few traditional institutions.”
The first development of this project was funded by a named Web3 Foundation grant of up to $ 100,000, issued in March 2020.
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Since then, the interoperability project has been the subject of two venture capitalists: an initial round of $ 3 million in July 2021 and a first round of $ 6.5 million in December 2021. Under the latter, the founder and CEO of DFG Capital’s major shareholder, James Wu, stated that the Interlay decision would “improve cross-chain opportunities for Bitcoin.”
In February, Interlay was announced among the winners of the 10th slot machine at the Polkadot parachain auction, after receiving more than 2.7 million DOT tokens from nearly 20,000 participants.