Atomic Loans raises $ 2.4M for its DeFi solution on Bitcoin

Initialized Capital and ConsenSys have invested in Atomic Loans, a young shoot that develops an infrastructure Challenge based on Bitcoin.

The investment fund of the co-founder of Reddit, Initialized Capital, has just completed a funding round of $ 2.45 million for Atomic Loans.

We also count the participation of Morgan Creek Digital, founders of Bison Trails, of Mike Cohen (The Abelian Group) and the Ethereum studio ConsenSys, which had already invested in the startup in 2019.

Bring Bitcoin in DeFi

Founded last year in Toronto, Canada, Atomic Loans aims to bring Bitcoin in the ecosystem of the Decentralized Finance (DeFi).

Its "atomic loans" protocol aims to provide a market for loans guaranteed by Bitcoin. It allows users to lock tokens in a non-depositary escrow on the Bitcoin channel and to borrow stablecoins based on Ethereum like DAI or USD Coin.

While the "primitive" architecture of Bitcoin makes it more difficult to develop solutions Challenge, Atomic Loans believes that the first cryptocurrency on the market is an asset of choice for guaranteeing loans.

It is very liquid, secured by the largest computing power network in the world, and recognized as a fantastic store of value, ”the startup said in a press release.

According to Min Teo, partner at ConsenSys Labs, Bitcoin will be an "important component" of DeFi. An ecosystem today largely dominated by Ethereum.

Atomic Loans leverages his deep expertise in Bitcoin scripts and atomic trading to create a DeFi product which works directly on the Bitcoin blockchain without the need for complex synthetics on other blockchains, ”added Brett Gibson, partner at Initialized Capital.

Atomic Loans plans to use the funding to hire new engineers to improve its product, including developing more loan options.