Reports said that Interlay, a newly appointed Polkadot (DOT) parachain network, is nearing the completion of a two-year Bitcoin (BTC) bridge development project on Polkadot, with the launch announcement on its sandbox platform Kusama.
It has been reported that Interlay has integrated a Wrapped Bitcoin (wBTC) digital asset, known as kBTC, on their Canary parachain Kintsugi. The asset is already available for trading on two other Polkadot parachains — Karura, governed by Acala, and Moonriver, governed by Moonbeam.
However, it is expected that Interlay will seek to deploy its technology across both Cosmos and Ethereum during the coming year to enhance interoperability between chains.
Alexei Zamyatin, the co-founder and CEO of Interlay, said:
"There is 14 billion USD worth of Bitcoin ‘DeFi’ on Ethereum, controlled by a handful of centralized custodians, behind KYC, with no remedy for users or DApps if something goes wrong. Even big players like Maker, Compound and Aave implicitly trust a few tradiFi institutions."
The report said that the initial development of this project was financially supported by an undisclosed-sum Web3 Foundation grant issued in March 2020. After this, the interoperability project was the subject of two capital raises, both a $3 million seed round in July 2021 and a pre-Series A $6.5 million round in December 2021.
James Wo, the founder of CEO of lead contributor DFG Capital, stated that Interlay's solution will "expand the cross-chain possibilities for Bitcoin."
Thus, in February, Interlay was announced as one of the winners of Polkadot's tenth parachain auction slot, securing in excess of 2.7 million DOT tokens from nearly 20,000 participants.