Singapore-based OKX Ventures, the investment arm of global cryptocurrency exchange and Web3 technology company OKX, has invested an undisclosed amount in DLC.Link, which harnesses the power of Discreet Log Contracts (DLCs) to establish a trustless bridge between Bitcoin and Ethereum.
DLC.Link aims to bring the power and innovation of DeFi to the Bitcoin ecosystem without compromising on security, decentralisation or user experience. It partners with institutions (called dlcBTC Merchants) to mint dlcBTC, a decentralised wrapped Bitcoin. Unlike other forms of wrapped Bitcoin, dlcBTC does not require Bitcoin deposits to be held with a custodian or bridged to a separate blockchain.
Also Read: OKX Ventures leads investment in Web3 venture studio BeWater
To mint dlcBTC, Bitcoin depositors self-wrap by locking their collateral into a DLC, which can only pay out to the original depositor. Thus, dlcBTC provides a theft-proof protocol, in that Bitcoin deposits cannot be lost through hacks, theft or fraud.
Furthermore, since only the original depositor can retrieve funds, dlcBTC is more resistant to censorship than current forms of wrapped Bitcoin.
Aki Balogh, co-founder of DLC.Link, said: “wBTC has reached Top 15 token status, despite its centralised custody model. In contrast, dlcBTC is the only wrapped Bitcoin that is minted from self-custody. DLCs, which were added to Bitcoin in 2021, enable a theft-proof wrapping mechanism without the need to introduce a bridge or L2 chain. dlcBTC will boost the adoption of Bitcoin in DeFi and has the potential to become a Top 10 token.”
With an initial capital commitment of US$100 million, OKX Ventures focuses on exploring the best blockchain projects on a global scale, supporting cutting-edge blockchain technology innovation, promoting the healthy development of the global blockchain industry, and investing in long-term structural value.
Also Read: OKX Ventures backs Web3 interoperability infra firm Polyhedra
Early this week, OKX announced that its Singapore subsidiary OKX SG received in-principle approval for a Major Payment Institution License (MPI) in Singapore. The licence allows it to provide digital payment tokens and cross-border money transfer services in the city-state.
The company looks to build a locally tailored suite of products and services.
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