Atomic Loans has been given a boost to develop a decentralized lending protocol for Bitcoin.

Atomic Loans, a startup focused on developing peer-to-peer Bitcoin-backed loans, announced that it has raised $2.45 million in seed round funding led by Initialized Capital. The funds will be used to continue research and development efforts to build the first Bitcoin-native solution for decentralized finance, according to Brett Gibson, partner at Initialized Capital.

Gibson said:

“As remarkable as the growth of DeFi has been to date, little or none of it works natively on Bitcoin. This leaves out what is far and away the largest and most valuable crypto-asset. Atomic Loans is leveraging their deep expertise in Bitcoin scripting and atomic swaps to create a useful DeFi product that works on the Bitcoin blockchain directly without requiring complex synthetics on other blockchains.”

Since Ethereum has taken the lead in the DeFi markets, Atomic Loans wants to provide Bitcoin holders with the ability to leverage and collateralize their satoshis in a non-custodial manner. The idea is to create a “two-sided marketplace” for BTC-backed lending services.

Users will be able to lock their BTC in a non-custodial escrow and borrow Ethereum-based stablecoins, such as DAI, to trade or pay for products and services without creating a taxable event or losing exposure to Bitcoin.

Min Teo, partner at ConsenSys Labs, stated:

“Bitcoin will be a core component of DeFi activity, which is growing and expanding rapidly in Ethereum today. The vision of creating a parallel financial system that is permissionless and open to all is one that transcends across chains and communities, and we are proud to continue our support for Atomic Loans who are at the forefront of realizing this vision in a trust-minimized manner.”

The Toronto-based firm is set to launch in Q2 2020 with the mission to create a decentralized financial infrastructure for Bitcoin from the ground up, subsequently, expanding the utility of the flagship cryptocurrency.

The post Atomic Loans raises $2.45m to build a decentralized finance marketplace for Bitcoin appeared first on CryptoSlate.

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