Bitcoin Ethereum bridge project gets $7.7 M from Coinbase co-founder

Bitcoin Ethereum bridge project gets M from Coinbase co founder

A Bitcoin Ethereum bridge has been in discussions ever since digital currencies made their mark in the financial realm. Now, it seems that the famed Bitcoin Ethereum bridge is closer to reality courtesy, a $7.7 million dollar boost.

Keep Network announced that it has just completed a $7.7 million investment round. Interestingly, the investment came from Coinbase co-founder Fred Ehrsam’s investment firm Paradigm Capital. Other notable investors also took part in the investment round, including Collaborative Fund and Fenbushi Capital. This substantial funding is sure to give a much-needed boost to the fantasized Bitcoin Ethereum bridge.

Bitcoin Ethereum bridge to bring together best of both worlds

Keep Network is working on a concept where Bitcoin ends up as Ethereum during transactions. Here, users can store their BTCs in a crypto wallet. When the user wants to undertake a transaction on the Ethereum network, they are given an Ethereum-friendly token. This way, they are already helping Bitcoin users access the Ethereum blockchain applications.

Moreover, these transient tokens can act as collateral to secure loans. BTC users can use these loans for margin or trading activities. These tokens are called ‘tBTC.’ Afterward, these tokens can be converted back to BTC via the same mechanism. In a way, they are already acting as a Bitcoin Ethereum bridge, albeit in an analogous manner.

Bitcoin Ethereum bridge looks closer to reality

Keep Network’s Matt Luongo explains that tBTC is an ideal combination of two biggest crypto assets namely the Bitcoin and the Ethereum. The coin delivers the best features of both worlds to its users. The robustness of the BTC remains, while tBTC users can exploit the supercomputing features of ETH network. And users have the ability to go back and forth between the two most widely used crypto assets.

The goal of the Bitcoin Ethereum bridge is to combine the smart contract features of the ETH network with the collateral potential of Bitcoin in the DeFi world. The actual launch date of tBTC token has not been released by the company.

Gurpreet Thind

Gurpreet Thind

Gurpreet Thind is pursuing Masters in Electrical Engineering at University of Ottawa. His scholarly interests include IT, computer languages and cryptocurrencies. With a special interest in blockchain powered architectures, he seeks to explore the societal impact of digital currencies as finance of the future. He is passionate about learning new languages, cultures and social media.

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