- Arch Labs: Building the Future of Bitcoin DeFi
- DPI Capital’s Role in Driving Ecosystem Growth
- Why Bitcoin?
- Keystone Program: Empowering Startups
Arch Network, which is working to bring decentralized finance (DeFi) to the Bitcoin ecosystem, has announced a partnership with venture capital firm DPI Capital. The goal of the collaboration is to support early-stage protocols that could become the foundation for the network’s growth.
Arch Labs: Building the Future of Bitcoin DeFi
Arch Labs, the team behind the Arch Bitcoin DeFi Network, raised $7 million in seed funding last year from top-tier VCs. That capital has been used to develop infrastructure, enabling Bitcoin to function within DeFi systems. Now, the company is expanding its mission, turning its attention to funding smaller protocols that can help strengthen and diversify the ecosystem.
Keystone, Arch Labs’ accelerator program, is a major part of this initiative designed to support promising developers and startups building key DeFi components such as lending and borrowing platforms, decentralized exchanges (DEXs), stablecoins, and real-world asset (RWA) integrations.
DPI Capital’s Role in Driving Ecosystem Growth
DPI Capital has joined Arch Labs as a strategic partner and is committing millions of dollars to fund early-stage projects through the Keystone program. Brent Fisher, General Partner at DPI Capital, shared that the firm is focused on investing in “pillar” protocols—critical components that can serve as the backbone of the Arch Network. These include DEXs, lending protocols, and other tools.
Fisher also noted that DPI Capital is now exclusively focused on the Arch Network. While the firm previously diversified across Ethereum-based investments, it has shifted entirely to Bitcoin-related projects. This approach carries risks, but Fisher is confident in Arch’s potential: “This network has tremendous potential—perhaps even more than Ethereum.”
Why Bitcoin?
Fisher’s optimism is rooted in Bitcoin’s status as the world’s most valuable crypto asset. Despite lacking a mature DeFi ecosystem, Bitcoin’s market capitalization significantly exceeds that of Ethereum. Many institutional investors hold BTC as a long-term store of value but currently have limited options for generating low-risk yield from it.
Fisher believes that the Arch network can change this situation, thanks to its unique architecture. Unlike other networks, Arch Labs uses its model for storing bitcoins without the need to wrap or pool assets. This reduces risks and makes the network more attractive to investors.
Keystone Program: Empowering Startups
Arch Labs’ Keystone program serves as a gateway for bringing fresh talent and new technology into the Bitcoin DeFi ecosystem. DPI Capital plans to invest up to $250,000 in teams with strong ideas. These investments are intended to help startups build their products and attract additional funding.
In addition to financial support, DPI will also assist startups with scaling and go-to-market strategies. As a result, Keystone is becoming a key driver of growth within the Arch Network, helping onboard new developers and projects into the ecosystem.
Conclusion
The partnership between Arch Labs and DPI Capital highlights the growing momentum behind Bitcoin-native DeFi. By combining Arch’s unique architecture with DPI’s financial firepower, the two organizations are laying the groundwork for a new wave of innovative protocols. This collaboration could mark a significant step in transforming Bitcoin from a passive store of value into a fully-fledged financial ecosystem.
