Function (FBTC) – Full Overview: How Bitcoin Becomes a Productive Asset

Function (formerly Ignition) is an infrastructure blockchain project aiming to transform Bitcoin from a static store of value into a productive asset. Its core product, FBTC (ƒBTC), is a fully reserved, multichain-compatible version of BTC that provides yield opportunities, DeFi compatibility, and a high level of security. In July 2025, Function raised $10 million from Galaxy Digital, Antalpha, and Mantle, with FBTC’s TVL reaching $1.5 billion.

• Architecture and Security
• Funding and Strategic Partnerships
• Integrations and Ecosystem
• Key Project Metrics
• Outlook and Challenges

Architecture and Security

FBTC is built on a trustless wrapping system using TSS (Threshold Signature Scheme) and an MPC-based key management model. BTC is deposited into custodial wallets with checkpoint mechanisms, after which a smart contract mints FBTC on the selected chain.

The following components support the system's reliability:

• Off-chain modules that monitor deposit/withdrawal statuses and synchronize state across chains.

• Bridge contracts responsible for minting/burning, user qualification checks, and reserve tracking.

• Smart contracts on EVM networks that implement FBTC functionality as an ERC‑20 token.

Security is ensured through:

• Distributed key management via TSS/MPC, eliminating single points of failure.

• Independent code and bridge audits.

• Custody agreements that ensure BTC remains under user control without third-party trust risks.

This multilayered architecture combines on-chain reliability with off-chain oversight to deliver a high-security infrastructure.

Funding and Strategic Partnerships

Function’s financial backing from prominent crypto industry players has been key to its rapid growth and credibility. In July 2025, the project raised $10 million in a successful seed round. Galaxy Digital led the round, joined by Antalpha and Mantle. This wasn't just funding — it was a strong signal of institutional belief in “productive Bitcoin.”

Each investor contributed not only capital but also strategic value to strengthen Function’s positioning:

• Galaxy Digital provides liquidity pools, helps design risk models, and joined the project’s Security Council.

• Antalpha, affiliated with Bitmain, enables access to Asian markets and institutional infrastructure.

• Mantle, a leading Layer-2 ecosystem, supports multichain compatibility and integrates FBTC into its native DeFi stack.

This combination of partners offers Function not only resources, but also direct access to institutional clients, including funds, exchanges, and corporate treasuries. Galaxy’s involvement is particularly significant, positioning FBTC as the first fully reserved institutional-grade yield-bearing Bitcoin token. These partnerships strengthen Function’s credibility and provide a solid foundation for sustainable growth.

Integrations and Ecosystem

Function is actively expanding its multichain infrastructure, making FBTC available across networks like Ethereum, Arbitrum, Mantle, and Babylon. At the time of writing, the token is supported by over 25 DeFi applications, including lending platforms, liquidity pools, and farming protocols. This enables BTC holders to earn yield while preserving 1:1 reserve backing.

Thanks to its omnichain architecture, FBTC can move freely between networks while maintaining a consistent link to its underlying asset. This flexibility makes it valuable to both retail and institutional users. Support from leading protocols like Aave and Avalon enhances FBTC’s utility across the DeFi landscape.

Function continues to integrate with new chains and dApps, aiming to build a robust and flexible platform for making Bitcoin productive in a multichain ecosystem.

Key Project Metrics

FBTC shows strong growth momentum and increasing interest from both institutional and DeFi participants. Since its launch, the project has attracted significant investor attention and integrated with major blockchain protocols. These metrics reflect both the project’s technical maturity and user confidence in its financial model.

These metrics highlight strong liquidity, user confidence, and the project’s scalability. Function shows a mature product cycle — from capital acquisition to ecosystem expansion. Given its current trajectory, Function and FBTC could become one of the leading standards for productive Bitcoin in the DeFi sector.

Outlook and Challenges

Function and FBTC have strong long-term potential. The demand for Bitcoin-based yield instruments continues to grow, especially among institutional investors. Ongoing integration with new DeFi platforms and multichain infrastructure enhances FBTC’s appeal as a versatile asset. At the same time, Function faces challenges from competing wrapped-BTC solutions and evolving regulatory landscapes. Maintaining 1:1 reserves and the technical robustness of bridges remain critical. Function’s success will depend on its ability to maintain transparency, flexibility, and trust among users and institutional partners.

With FBTC, Function aims to transform Bitcoin from a passive store of value into a productive, multichain, institution-ready yield asset. The $10M seed round, $1.5B+ TVL, and backing from Galaxy Digital provide a solid foundation for scaling adoption. Still, the project's future depends on navigating competition, mitigating risks, and addressing regulatory pressures across jurisdictions.