Portal to Bitcoin has successfully raised $25 million and launched its new atomic OTC desk, specifically designed to cater to institutional clients. This strategic move aims to re-establish Bitcoin as a primary settlement layer for significant global transactions, eliminating the need for intermediaries.
The funding round was spearheaded by JTSA Global, with participation from existing investors including Coinbase Ventures, OKX Ventures, and Arrington Capital. The most notable development is the introduction of the OTC desk, which leverages HTLC contracts. This innovation enables instant cross-chain settlements without the requirement of custodians, bridges, or wrapped tokens.
This new service functions as an institutional-grade iteration of atomic swaps, similar to those employed by THORChain or Chainflip. It is tailored to provide genuine liquidity for large investors and institutions, facilitating the exchange of native BTC for native assets on other blockchains. The transactions are executed using Taproot + HTLC contracts, with a guarantee of fund return in case of any failures. The system emphasizes the use of only native, verifiable assets, eschewing wrapped assets and third parties.
Technical Architecture and Operation
The system operates on its own Layer 3 network, named BitScaler, which employs a hub-and-spoke channel structure. At the core of this network is a federation of validators, referred to as "Portal Guardians." Liquidity providers are situated at the network's periphery. Transactions are facilitated through HTLCs, ensuring that either both parties complete their obligations or the funds are returned to their original holders. This mechanism guarantees that no party loses money in the event of an error or an expired transaction.
The Role of Validators in Portal to Bitcoin
Portal to Bitcoin differentiates itself from platforms like THORChain or Chainflip by minimizing trust assumptions. Unlike systems that rely on custodial vaults and validator honesty, Portal to Bitcoin's validators are solely responsible for matching orders and do not manage funds directly.
The underlying infrastructure utilizes a Notary Chain built on EVMOS. While the current validator set is permissioned, the long-term plan involves opening it up through staking auctions utilizing the PBT token. The network aims to support up to 150 validators to achieve genuine decentralization without compromising security. These validators are not entrusted with pools or vaults; their responsibilities include order matching, accounting, cross-chain contract execution, and, in the future, operating an Automated Market Maker (AMM) once the system transitions from its current order book model.
Re-centering Bitcoin in Large-Scale Trades
While no system is entirely risk-free, Portal to Bitcoin has implemented measures to mitigate potential issues. Although validators cannot abscond with funds, they could theoretically engage in censorship of swaps, manipulate prices, disrupt liquidity, or disable services if they act maliciously or become unavailable. Portal to Bitcoin is focused on minimizing these risks, acknowledging that ongoing oversight will remain crucial.
Portal to Bitcoin is positioning itself as a novel gateway for institutions seeking to operate with native BTC within the global market, bypassing the need for custodians, bridges, or synthetic tokens. If this model achieves its projected scalability, it has the potential to significantly alter the landscape of how large-scale transactions are executed within the cryptocurrency market.