Portal to Bitcoin Secures $25M and Introduces Atomic OTC Desk

Portal to Bitcoin, a Bitcoin-oriented interoperability protocol, has successfully raised $25 million in funding and launched an innovative atomic over-the-counter (OTC) trading desk designed for institutional investors.

Key Takeaways

Portal to Bitcoin raised $25 million, led by JTSA Global, and includes contributions from Coinbase Ventures and OKX Ventures.
They launched an Atomic OTC desk, facilitating instant, trustless cross-chain settlements for large block trades.
The platform focuses on enabling the Bitcoin-native cross-chain OTC market without the need for custodians.
Utilizing Hashed Timelock Contracts (HTLCs), Portal aims to enhance security and reduce trust assumptions in trading.

Portal to Bitcoin raises $25M and launches atomic OTC desk

Introduction to Portal to Bitcoin

Recently, Portal to Bitcoin has announced a significant achievement by raising $25 million to enhance its services, including the rollout of its Atomic OTC desk. This announcement, made on Thursday, indicates strong investor confidence, especially with backing from organizations like JTSA Global and previous contributions from Coinbase Ventures and OKX Ventures.

The Atomic OTC desk promises to provide “instant, trustless cross-chain settlement of large trades,” similar to existing services provided by THORChain and Chainflip, while maintaining a focus on Bitcoin.

Decentralization
Portal to Bitcoin team members: co-founder and CTO Manoj Duggirala, founder and CEO Chandra Duggirala, and co-founder George Burke. Source: Portal to Bitcoin

Native Assets and Non-Custodial Trading

One of the standout features of Portal to Bitcoin is its approach to high-security trading involving only native assets, eliminating the need for custody. The platform employs Hashed Timelock Contracts (HTLCs) across various blockchains and implements Bitcoin Taproot contracts. This setup allows the non-custodial swapping of Bitcoin for native assets, emphasizing reduced trust.

HTLCs ensure that exchanges occur seamlessly; either both parties complete their trades or revert back to their original assets. This method leverages BitScaler—an advanced layer resembling Bitcoin's Lightning Network. It operates similarly to Lightning channels, creating a hub-and-spoke model where liquidity providers connect through a secure network.

This innovative environment means users transact with native assets without relying on wrapped tokens, ensuring that in case of any issues during swaps, users can retrieve their funds.

Duggirala pointed out that while some existing systems like THORChain and Chainflip handle funds through vaults, which may expose assets to risks, Portal to Bitcoin uniquely minimizes these vulnerabilities.

Understanding the Security Framework

Portal to Bitcoin has developed a specialized Notary Chain based on the Ethereum Virtual Machine on Cosmos (EVMOS). This feature includes designated validators, known as Portal Guardians, initially set at 42 slots—planned to increase to 150. Validator selection occurs through a permissioned auction system; however, Duggirala noted that the current setup is also permissioned, with an eye towards making it more inclusive in the future.

The reduced validator count serves a specific purpose. According to the documentation, these validators do not control liquidity pools, and their main role is to facilitate transactions between buyers and sellers rather than handling funds directly.

Nevertheless, the validators play a crucial role in managing the Lightning hub, tracking notary chain state, and ensuring the overall functionality of the system. While they cannot directly seize user funds, their actions can impact trade execution and potentially compromise system efficiency, especially if any malicious intent arises.

Conclusion

Portal to Bitcoin's innovative approach in raising capital, combined with its focus on creating a secure and efficient trading environment for Bitcoin and other native assets, sets it apart in the rapidly evolving cryptocurrency market. As it navigates the complexities of decentralized finance (DeFi) and institutional trading, it aims to redefine how large transactions are executed across blockchain platforms.

Related Articles:

Anchorage-Mezo partnership opens institutional access to low-cost BTC-backed loans.
Threshold: Upgraded bridge to funnel $500B institutional BTC into DeFi.
Bitcoin’s long-term security budget problem: Impending crisis or FUD?