• BitLen developing peer-to-peer Bitcoin loan application based on Elastos’ BeL2 protocol
• BQ Labs to build the World’s first decentralized insurance protocol for the Bitcoin ecosystem
• Increasing variety of financial services products being developed in the World’s most popular decentralized currency signals the emergence of a ‘new Bretton Woods’ based on Bitcoin (Bitcoin finance (‘BitFi’))

Singapore: September 18, 2024 – Elastos today announced two more partnerships to develop and deliver financial services products in native Bitcoin.  The developments – being undertaken with BitLen and BQ Labs, respectively – confirm the momentum building around Bitcoin-denominated decentralized finance (‘BitFi’).

BitLen is developing a peer-to-peer Bitcoin-denominated loan offering based around Elastos’ Bitcoin Elastos Layer2 protocol – codenamed ‘BeL2’; a Layer 2 solution for Bitcoin, enabling multiple functionalities such as staking and smart contracts to be denominated directly in the World’s most popular digital currency. 

The resulting loan mechanism will enable Bitcoin users to collateralize up to 80% of their assets in return for L2 credit (stable coins, for instance) based on terms defined in a Bitcoin-assured smart contract. Thanks to the BeL2 protocol, this process can be completed without bridging, wrapping or otherwise interfering with the Bitcoin layer; this both assures the integrity of the currency and avoids network congestion, additional fees, and security compromises that would otherwise result.  

“The BeL2 protocol perfectly reflects what BitLen is all about; increasing Bitcoin liquidity without compromising its integrity.  The result will be a genuinely peer-to-peer loan product; it’s not simply Bitcoin-based credit, but completely disintermediated and anonymous,” says Leon Jiang, CEO of BitLen. 

BQ Labs is a Bitcoin-focused platform that provides decentralized insurance and risk management solutions for Bitcoin Layer 2 protocols and validators. Through the partnership, BQ Labs’ Risk Engine product will be incorporated into the Elastos ecosystem and dApps, to help users plan and mitigate operational and compliance risk when transacting in Bitcoin.  

“Our mission is to facilitate and secure the 21 million BTC currently onboarding to DeFi, across all stages of the ecosystem from hodlers to validators, providing them with a set of tools and protocols to manage and mitigate their risk. Our partnership with Elastos reflects our shared vision of Bitcoin-denominated DeFi with all the benefits of true decentralization,” says Akshay Agrawal, CBO of BQ Labs.  

Jonathan Hargreaves, Elastos’ Global Head of Growth, describes the partnerships as ‘irrefutable proof’ of the momentum now gathering around Bitcoin-based financial instruments.

“Both projects demonstrate the benefits that native Bitcoin can bring to decentralized finance in terms of integrity, security and validation, as long as the token itself is not compromised in the process.  Our BitLen partnership, for instance, represents the perfect example of the potential of what can be achieved with Bitcoin-based smart contracts that – thanks to BeL2’s unique ZK-proof process – ensure complete interoperability while leaving the Bitcoin layer entirely untouched,” he says. 

”With BQ Labs, it’s about incorporating tools and protocols that make it easier and safer to transact in Bitcoin; specifically to help Bitcoin-denominated L2 projects build trust and credibility while simultaneously reducing their operational and regulatory headaches,” Jonathan adds. 

“Both these partnerships demonstrate Elastos’ commitment and role in supporting a DeFi ecosystem with Bitcoin at its heart.  And this is where the big opportunity lies – the establishment of what we call a ‘new Bretton Woods’; a reserve currency whose supply is fixed and guaranteed (just like the Gold Standard), complete with integrity and security, but which – unlike traditional reserves such as gold bullion – can be subdivided, stored and transferred at zero cost.  Native Bitcoin embodies all the qualities of an alternative reserve currency, and – as these partnerships demonstrate – the era of ‘BitFi’ is now upon us,” he concludes.  

BitLen will be joining executives from Elastos at the Token 2049 side event, Asia OnChain – RWA, DePIN & DAO, 19 September ‘24. 

About BitLen 

BitLen aims to be a community-driven, cross-chain liquidity-boosting platform offering stability through its Bitcoin-pegged HEX token, diverse yield strategies via lending, and restaking capabilities within the Bitcoin ecosystem.

About BQLabs 

BQLabs is transforming risk management in the Bitcoin ecosystem with its innovative decentralized insurance protocol. At the heart of this transformation is the BQ Protocol, which provides a comprehensive technical, operational, and legal infrastructure to facilitate the underwriting, trading of risks, and insurance cover purchases. The BQ Protocol is designed to address the unique challenges of the Bitcoin network, offering a secure and user-centric approach for managing risks.

About Elastos

Elastos is a public blockchain project that integrates blockchain technology with a suite of reimagined platform components to produce a modern Internet infrastructure that provides intrinsic protection for privacy and digital asset ownership. The mission is to build accessible, open-source services for the world, so developers can build an internet where individuals own and control their data. The Elastos SmartWeb platform enables organizations to recalibrate how the Internet works for them to better control their own data.