Bitlayer Labs Announces Strategic Partnerships to Advance the Vision of Expanding Bitcoin Beyond Its Traditional Role

Bitlayer, the first Bitcoin-focused layer-2 network, has made a significant announcement today to further advance the vision of expanding Bitcoin

Layer-1 blockchain Bitlayer has announced at ETH Denver 2025 its key partnerships with five Blockchains, viz., Arbitrum (NYSE:ARW) (ATOM) (BNB) (SOL) (XRNB) , Statknet, Base, SonicSVM and Plume Network. The partnership aims to unlock Bitcoin's $1.9 trillion liquidity by integrating it with these five major Blockchains through Bitlayer's BitVM. The collaboration is set to work towards widening the role of Bitcoin by bringing Bitcoin-powered smart contracts, interoperability, and decentralized finance (DeFi) similar to existing Ethereum.

Historically, Bitcoin has been the most secure and decentralized blockchain, but its limited scripting language has prevented the development of advanced smart contracts. The off-chain computation framework, Bitlayer BitVM Bridge, seeks to change that by enabling Turing-complete smart contracts on Bitcoin without requiring protocol changes.

This technology facilitates the seamless transfer of Bitcoin (BTC) into various blockchain ecosystems, allowing BTC holders to engage directly with DeFi applications without relying on centralized intermediaries.

Bitlayer's Bitcoin Virtual Machine (BitVM) enables Turing-complete smart contracts on Bitcoin and allows developers to build Ethereum-like dApps without changing Bitcoin's protocol. It uses off-chain computation and fraud proofs to ensure security and efficiency.

What does the integration entail?

The announced partnerships by Bitlayer with the key Blockchain networks can significantly accelerate the integration of Bitcoin in the Web3 ecosystem. Every partner in this partnership is set to play a key role, such as:

As one of the leading Ethereum Layer-2 solutions, Arbitrum will provide scalability and high-speed execution for BitVM-powered smart contracts and yBTC DeFi applications. Through the BitVM Bridge, Arbitrum users can bridge assets to and from Bitcoin under a trust-minimized framework, enriching Arbitrum's DeFi landscape.

The integration with Starknet will offer Bitcoin users instant transactions with minimal fees in a new, secure environment, leveraging STARK proofs for enhanced security and efficiency.

By integrating with Sonic, the first Solana Virtual Machine (SVM) chain, the BitVM bridge will be able to bring Bitcoin liquidity to a broader range of Web3 applications, including gaming and social media platforms.

The collaboration with Plume Network, a Layer 1 blockchain focused on real-world assets (RWA), can unlock Bitcoin's liquidity for institutional-grade financial products, bridging traditional finance with blockchain technology. It will enable native BTC to flow directly into its ecosystem to access real yields and RWA staking, bridging a new era of RWAfi and BTCfi together.

Further, the integration of yBTC (Yield Bitcoin) into these networks will enhance Bitcoin's utility. yBTC is a wrapped Bitcoin asset that allows BTC holders to participate in DeFi applications, lending protocols, and yield-generating opportunities while maintaining exposure to Bitcoin's value. With this partnership, yBTC will be natively supported across multiple blockchain ecosystems, creating new liquidity and DeFi use cases.

With yBTC available across major networks like Arbitrum, Apix, Base, and Starknet, BTC holders can access lending, staking, and liquidity provision opportunities without relying on centralized intermediaries. This partnership marks a significant step towards expanding Bitcoin's role in the rapidly evolving digital asset industry.

As these five major blockchains rapidly expand their footprints in the Layer-2 and Layer-1 sectors, the collaboration promises to be instrumental in unlocking the full potential of both Bitcoin and these five blockchains.