The funding reflects growing demand for lending solutions in the Bitcoin ecosystem.
Liquidium, an emerging Ordinal lending platform on Bitcoin, has secured $1.25 million in a pre-seed funding round, a December 11 press release outlines.
The company gained substantial support from key investors such as Bitcoin Frontier Fund, Side Door Ventures, Actai Ventures, Sora Ventures, Spicy Capital, UTXO Management, alongside a group of strategic angel investors.
Liquidium offers users Ordinal-backed Bitcoin loans and has already generated nearly one million dollars in Bitcoin loan volume across 300 transactions. The platform has been in closed beta since July 2023, transitioning today to open beta.
How Liquidium works
Liquidium lets users borrow or lend Bitcoin using unique Bitcoin Ordinals as collateral. Similar to NFTs, Bitcoin Ordinals are unique digital assets that are inscribed directly onto satoshis, the smallest unit of a Bitcoin. Inscriptions can include JPEGs, code and other – with a maximum limit of 4MB.
Liquidium works by leveraging Partially Signed Bitcoin Transactions (PSBTs) and Discreet Log Contracts (DLCs) in lieu of Bitcoin smart contracts.
Lenders have the opportunity to lend Bitcoin against Ordinals to earn a native BTC yield.
The inclusion of institutional lenders, such as N-Sigma Capital AG, a specialised quantitative trader, adds to the platform’s liquidity.
Ordinal trading volume has surged 357% over the past 30 days, outpacing Ethereum, Solana and Polygon.
Tyler Evans, Managing Partner at UTXO Management, said, “Liquidium is pioneering the on-chain, peer to peer lending market for Bitcoin and Bitcoin-native assets. As an early Liquidium user, I’ve been thrilled to see the growth of liquidity and volume on the platform and am excited to continue supporting the team’s progress as investors with UTXO Management.”
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