Arch Labs wants to unlock a new era for Bitcoin. With $13 million in new funding, the startup is making a bold move—bringing smart contracts directly to Bitcoin’s base layer. No bridges. No wrappers. Just pure, native programmability.
The Series A round was led by Pantera Capital and brings Arch Labs’ total raised to $20 million. Its valuation now stands at $200 million. The fresh capital will fuel the launch of its mainnet, which is set to go live this summer.
For years, Bitcoin has remained hard to build on. While it leads the crypto market with a value of over $2 trillion, its design has limited its use to simple payments. Developers looking to create DeFi apps or NFTs have had to use external platforms or rely on risky bridges to other blockchains. Arch Labs plans to fix that.
At the heart of its approach is ArchVM, a custom virtual machine. It lets developers build powerful apps—like swaps, lending tools, DAOs, and games—right on Bitcoin. Everything runs natively, secured by the network’s core infrastructure.
CEO Matt Mudano says the goal is simple: expand Bitcoin’s potential without sacrificing what makes it secure and trusted. Arch is focused on three things—liquidity, user experience, and decentralization. And it’s betting that this cleaner, more direct approach will win over developers who want more from Bitcoin.
The funding round saw participation from big names in crypto, including Multicoin Capital, Portal Ventures, OKX Ventures, CMS Holdings, Tangent, and Big Brain Holdings. Pantera’s Franklin Bi says Arch’s solution enhances Bitcoin, rather than splitting its liquidity. With smart contracts now possible on Layer 1, Bitcoin is catching up to platforms like Ethereum and Solana.
So, what powers this upgrade?
Arch’s system is built on three layers:
- ArchVM: A high-speed, Turing-complete virtual machine that handles complex tasks and smart contract execution—much like Solana.
- Decentralized Validator Network: Uses Proof-of-Stake to finalize and coordinate contracts while keeping everything decentralized.
- FROST + ROAST Multisig: These advanced signature schemes ensure safe, multi-party key management with no single point of failure.
This setup means developers can tap directly into Bitcoin’s liquidity—no need to move assets elsewhere. Applications run natively, and assets stay on Bitcoin’s base layer, ensuring security and simplicity.
Arch believes that simplicity is key. Builders have long wanted more from Bitcoin, and with this new approach, they may finally get it. Backed by serious capital and ready for launch, Arch Labs is betting that Bitcoin’s next evolution will happen where it began—on its base layer.
