- Binance Labs has invested in Bitcoin DeFi platform BounceBit
- The investment is meant to help enhance Bitcoin’s capabilities
- The move comes a few days after Binace NFT dropped Bitcoin collectibles from the platform
Crypto exchange Binance’s independent venture capital arm Binance Labs has disclosed an investment in Bitcoin DeFi protocol BounceBit to help advance Bitcoin’s utility beyond the “traditional storage of value” use case. The investment comes a few days after the exchange said it’ll no longer support Bitcoin collectibles on its NFT platform. Binance Labs disclosed that the investment is among ways to support innovators in the blockchain scene, something that may see it increase its investment in the upcoming DeFi ecosystem.
A Dynamic Force Within
Binance Labs’ head Yi He said the Bitcoin DeFi protocol is opening up new paths to utilize Bitcoin, adding that they’re ready to support BounceBit’s mission. Binance Labs described the platform as one that positions BTC to be a “dynamic force within” the decentralized finance scene.
According to He, BounceBit is on track to merging the centralized finance world with decentralized finance in a “secure and transparent” manner.
BounceBit CEO Jack Lu commented on the development noting that his firm is committed to building “restaking infrastructure” to advance the “utilization of Bitcoin [in the] CeDeFi” space. BounceBit currently allows BTC holders to use their holdings across oracles, bridges, and other systems.
Binance Labs’ move comes at a time when more entities are working to expand the Bitcoin ecosystem through projects like Bitcoin Ordinals that gave birth to Bitcoin NFTs.
Against Nakamoto’s Vision?
In January Bitcoin developers announced a new platform meant to open up the Bitcoin blockchain to DeFi. Marathon Digital also recently unveiled a Bitcoin scaling layer to bolster Bitcoin’s adoption.
Other entities like NFT marketplace Magic Eden have created products to support creators on the Bitcoin blockchain. However, the idea to expand Bitcoin’s use cases hasn’t been well-received by everyone with some saying it goes against Satoshi Nakamoto’s vision.
With Binance Labs announcing interest in the ecosystem, it’s to be seen whether it’ll help lift the Bitcoin DeFi space off the ground.
