Bitlayer, a Bitcoin DeFi infrastructure firm backed by global asset manager Franklin Templeton, has officially launched its Bitcoin smart contract bridge, BitVM, on mainnet. The move aims to supercharge Bitcoin’s role in decentralized finance by making it interoperable with other smart contract-enabled blockchains like Sui, Base, and Arbitrum.

BitVM is promoted as a “trust-minimized” solution that lets users lock up their Bitcoin into a smart contract, converting it into Peg-BTC (YBTC). This wrapped version of Bitcoin enables the asset to be used within DeFi protocols across different networks, without altering Bitcoin’s base layer. Bitlayer says this innovation allows Bitcoin holders to tap into advanced DeFi utilities without sacrificing decentralization.

Unlike many cross-chain bridges that rely on a multi-signature system—a common attack vector exploited by hackers in major bridge exploits—BitVM is built with a simplified single-signer model designed to reduce trust assumptions and increase security.

Bitlayer’s move arrives as Bitcoin DeFi gains momentum following the Taproot upgrade and the rise of Inscriptions, which opened up programmability and new data embedding capabilities for the network. With over $384 million in total value locked and $1.7 million in June fees, Bitlayer is cementing its place among growing Bitcoin-native DeFi solutions.

It joins a competitive landscape with platforms like BabylonChain, Stacks, and BounceBit—all aiming to bring yield, staking, and smart contracts to Bitcoin. Babylon currently leads with a TVL of $5.2 billion.

As of now, roughly 30 DeFi projects are actively building within Bitcoin’s ecosystem, signaling a major evolution of the world’s oldest blockchain. Bitlayer’s launch could mark a turning point in making Bitcoin a serious DeFi contender.