Bitlayer Launches BitVM Bridge to Mint YBTC in Bitcoin DeFi
Bitlayer has launched the BitVM Bridge on Bitcoin mainnet, a trust-minimized cross-chain solution that lets users lock BTC into transparent smart contracts and mint 1:1–pegged YBTC tokens on Layer 2 networks. The BitVM Bridge secures assets with on-chain dispute and fraud proofs anchored to Bitcoin PoW. Following successful tests on Bitcoin Testnet3 and BitVMNet, the mainnet release marks the first live application of the BitVM paradigm. The bridge integrates with Sui, Arbitrum, StarkNet, Base, Cardano and Plume, boosting Bitcoin DeFi liquidity across chains. Bitlayer is previewing Network 2.0 with sub-second finality, decentralized sequencers and fund escape hatches, and plans Network 3.0 to deliver millisecond settlement and parallel EVM execution. Traders can now bridge BTC via the BitVM Bridge to access new YBTC yield strategies in staking, lending and trading. Bitlayer will expand network support and launch audits, bug bounties and decentralization initiatives.
Bullish
The BitVM Bridge launch is likely bullish for YBTC and BTC in the short term by enabling immediate bridging and yield opportunities that can drive demand for YBTC tokens and BTC deposits. In the long term, the trust-minimized design, integration with multiple Layer 2 networks and roadmap for Network 2.0 and 3.0 underpin deeper Bitcoin DeFi liquidity, institutional confidence and wider adoption. Historical launches of robust cross-chain bridges often lead to sustained increases in on-chain activity and token usage, suggesting a positive outlook for YBTC and related markets.