Lightning Network liquidity staking protocol UTXO Stack on December 19th announced that it has completed its Series A funding round at a valuation of $50 million.
The funding comes at a time when the entire crypto industry has seen a slight downturn in the amount of funding received.
Who Participated in the Funding?
With a valuation of $50 million, UTXO Stack reported that the platform has successfully concluded a fresh fundraising round headed by UTXO Management, PAKA, and CMS Holdings.
The lightning network liquidity staking protocol will now be able to improve its liquidity and introduce stablecoins into the Bitcoin ecosystem more quickly thanks to this funding.
At present, airdrop incentives for Bitcoin liquidity providers in early January and the first TGE on Lightning Network in Q1 2025 are two of the major milestones that the platform aims to achieve.
Additionally, the incorporation of the CKB Fiber Network is another milestone that the platform is aiming to achieve.
UTXO Stacks Previous Funding
In the past, OKX Ventures and other investors participated in a seed investment round that was co-led by ABCDE Capital and SNZ Capital.
With the current funding, in line with Satoshi Nakamoto’s idea of Bitcoin as “A Peer-to-Peer Electronic Cash System,” UTXO Stack is striving to fulfill its vision of offering smooth, international $BTC payments.
The platform said, “We believe that Bitcoin should not only be a store of value but also serve as a practical, everyday payment solution. Lightning Network is the key to achieving the mass adoption of Bitcoin.”
UTXO Funding Comes As Crypto Market Sees Slight Drop In Capital Raise
The Lightning Network liquidity staking protocol’s funding raise comes as the entire crypto market saw a slight drop in capital raise. According to research, while the deal count dropped 35.8% to its lowest level of the year in November 2024, deal volume increased 22.6% month over month to $2.16 billion.
Infrastructure accounted for 48.3% of the overall volume, primarily due to large debt financings for Bitcoin mining. Stablecoins came in second, with Tether raising $600 million.
Because UTXO Stack is at the vanguard of growing the Bitcoin ecosystem by making it simple for developers to launch BTC Layer 2 products based on the UTXO paradigm, it was able to raise the necessary funds.
By integrating the platform with the RGB++ protocol, cross-chain bridges are no longer necessary and BTC and parallel Layer 2s built on the UTXO Stack can communicate more easily. Furthermore, it strengthens Layer 2 security by staking BTC, CKB, and other Layer 1 BTC assets.