Bitcoin’s Next Frontier? Hemi Merges Chains to Power DeFi

Hemi Labs, the Bitcoin programmability network co-founded by Bitcoin core developer Jeff Garzik, has raised $15 million in a funding round led by YZi Labs (formerly Binance Labs), Republic Digital, and HyperChain Capital [1]. The capital will accelerate the development of Hemi’s ecosystem and support the launch of its native token [2]. The round also included participation from Breyer Capital, Big Brain Holdings, and Crypto.com, bringing Hemi’s total funding to $30 million [3].

At the heart of Hemi’s offering is the Hemi Virtual Machine (hVM), a layer that embeds a Bitcoin node within an Ethereum Virtual Machine [1]. This architecture aims to bridge Bitcoin’s robust security with Ethereum’s programmable capabilities, enabling a new class of decentralized finance (DeFi) applications on Bitcoin. By doing so, Hemi allows developers to build on Bitcoin without compromising its foundational security or decentralization. Garzik, a co-founder and one of Bitcoin’s earliest developers, emphasized that Bitcoin does not require re-invention, but rather the right tools to unlock its full potential [3].

The company has already seen significant adoption, with over 100,000 verified users and a community of 400,000 members [1]. Hemi’s ecosystem has integrated with 70+ partners, including Sushi, LayerZero, MetaMask, and Redstone [3]. The network’s total value locked has reached $1.2 billion since the March mainnet launch, which started with $440 million already committed [1]. The latest funding follows a $15 million round in September 2024 and positions Hemi to expand further into Bitcoin DeFi applications such as lending, borrowing, and trading [4].

The investment comes amid growing interest in Bitcoin’s role in DeFi, as developers seek to leverage its $2.3 trillion market cap for more active financial use cases [1]. Hemi’s approach reflects a broader trend of layer-2 solutions that aim to scale Bitcoin while maintaining its security. Competitors are also building infrastructure to transform Bitcoin into a more dynamic asset, but Hemi’s unique integration of Ethereum’s smart contract capabilities sets it apart [1].

Investors highlighted Hemi’s technical innovation and team experience as key factors in their decision to back the project [3]. Joseph Naggar of Republic Digital noted that Hemi’s architecture could unlock new potential for Bitcoin, combining the security of the Bitcoin network with the flexibility of Ethereum’s developer tools [3]. Alex Odagiu of YZi Labs praised the team’s ability to translate decades of experience into working systems, calling Hemi a foundational platform for Bitcoin-native applications [3].

With the fresh capital, Hemi aims to strengthen its development team, expand its ecosystem, and prepare for its token generation event [2]. The project’s roadmap includes further enhancements to the hVM, as well as cross-chain “Tunnels” and Proof-of-Proof consensus mechanisms, attributed to co-founder Maxwell Sanchez [3]. These innovations are intended to streamline the integration of Bitcoin with other blockchains, enabling seamless asset flows and broader composability.

As the Bitcoin DeFi space matures, Hemi’s focus on programmability and scalability could position it as a critical infrastructure layer for the next wave of Bitcoin-based financial innovation. The company’s ability to attract major institutional backers and build a strong developer ecosystem suggests that it is well-positioned to capitalize on the ongoing expansion of Bitcoin’s utility.

Source:

[1] Hemi Labs Raises $15M to Expand Bitcoin Programmability (https://www.coindesk.com/tech/2025/08/27/hemi-labs-raises-usd15m-to-expand-bitcoin-programmability)

[2] Hemi Raises $15 Million for Bitcoin–Ethereum Layer-2 … (https://thedefiant.io/news/blockchains/hemi-raises-15-million-bitcoin-ethereum-layer-2-network-4cb0054f)

[3] Hemi Raises $15 Million to Accelerate Bitcoin … (https://www.prnewswire.com/news-releases/hemi-raises-15-million-to-accelerate-bitcoin-programmability-ahead-of-token-launch-302539049.html)

[4] Hemi closes $15 million funding round ahead of token … (https://www.theblock.co/post/368234/hemi-raises-15-million-ahead-of-token-launch-for-bitcoin-programmability-layer)