Function has announced raising $10 million in a seed funding round to launch FBTC, a fully reserved Bitcoin asset aimed at institutional clients.
What is FBTC?
FBTC is set to be the cornerstone for institutional Bitcoin investments, allowing institutions to earn yield on their assets. The asset is fully backed 1:1 with Bitcoin and currently encompasses over $1.5 billion in Total Value Locked (TVL). FBTC is designed to integrate with over 25 decentralized applications and eight major blockchain protocols, including Ethereum and Aave, ensuring wide interoperability.
Support from Investors
Galaxy Digital has emerged as a key investor and strategic partner for Function, enhancing FBTC's market capabilities. Function CEO Thomas Chen stated, "We’re building the infrastructure that routes Bitcoin into productive capital flows." Galaxy Digital will actively participate in the governance and liquidity mechanisms of FBTC.
The Future of Bitcoin in Institutional Finance
The FBTC platform offers a multi-layered compliance framework, making it more appealing to regulated institutions. The underlying technology supports compliance with upcoming EU MiCA regulations and anti-money laundering standards, setting a new benchmark for Bitcoin-backed products in traditional markets. This also coincides with the growing investments from publicly traded companies into Bitcoin, highlighting the increasing corporate interest in the asset.
The launch of FBTC by Function is a significant step in the further adoption of Bitcoin among institutional investors, providing new opportunities for liquidity and increased interest in crypto assets in the traditional market.
