Atomic Loans raises $2.45m to build a decentralized finance marketplace for Bitcoin 🚨 This article is 5 years old...
Atomic Loans raises $2.45m to build a decentralized finance marketplace for Bitcoin
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Updated: May. 28, 2020 at 4:58 am UTC
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
Atomic Loans has been given a boost to develop a decentralized lending protocol for Bitcoin.
Non-custodial Bitcoin-backed loans are coming soon
Atomic Loans, a startup focused on developing peer-to-peer Bitcoin-backed loans, announced that it has raised $2.45 million in seed round funding led by Initialized Capital. The funds will be used to continue research and development efforts to build the first Bitcoin-native solution for decentralized finance, according to Brett Gibson, partner at Initialized Capital.
Gibson said:
“As remarkable as the growth of DeFi has been to date, little or none of it works natively on Bitcoin. This leaves out what is far and away the largest and most valuable crypto-asset. Atomic Loans is leveraging their deep expertise in Bitcoin scripting and atomic swaps to create a useful DeFi product that works on the Bitcoin blockchain directly without requiring complex synthetics on other blockchains.”
Since Ethereum has taken the lead in the DeFi markets, Atomic Loans wants to provide Bitcoin holders with the ability to leverage and collateralize their satoshis in a non-custodial manner. The idea is to create a “two-sided marketplace” for BTC-backed lending services.
Users will be able to lock their BTC in a non-custodial escrow and borrow Ethereum-based stablecoins, such as DAI, to trade or pay for products and services without creating a taxable event or losing exposure to Bitcoin.
Min Teo, partner at ConsenSys Labs, stated:
“Bitcoin will be a core component of DeFi activity, which is growing and expanding rapidly in Ethereum today. The vision of creating a parallel financial system that is permissionless and open to all is one that transcends across chains and communities, and we are proud to continue our support for Atomic Loans who are at the forefront of realizing this vision in a trust-minimized manner.”
The Toronto-based firm is set to launch in Q2 2020 with the mission to create a decentralized financial infrastructure for Bitcoin from the ground up, subsequently, expanding the utility of the flagship cryptocurrency.
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Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Ethereum
$3,367.27
Ethereum is a decentralized, open-source blockchain platform that enables the creation of smart contracts and decentralized applications (DApps).
Single Collateral DAI
$1.28634
Dai is a cryptocurrency that automatically reacts to emergent market conditions in order to stabilize its value against the major world currencies.