Fiamma Bridge enables non-custodial Bitcoin yield and borrowing on Ethereum, Arbitrum, and more through BitVM2-powered infrastructure.
Bitcoin infrastructure company Fiamma Labs launched Fiamma Bridge, a publicly available Bitcoin bridge built using BitVM2 technology. The solution enables Bitcoin to be used across 11 major chains without relying on centralised custodians.
The launch allows users to earn yield, borrow against, and spend Bitcoin in DeFi ecosystems while maintaining self-custody. When users deposit BTC via the bridge, they receive FiaBTC, which is a tokenised version of Bitcoin with a 1:1 value ratio. Backed by a trust-minimised system and redeemable for real BTC at any time, FiaBTC unlocks new use cases for Bitcoin as a productive asset.
“Bitcoin has always been for everyone, but until now, using it meant trusting centralised parties to access financial services,” said Yovela Luo, Co-founder of Fiamma. “With the Fiamma Bridge, we’ve unlocked Bitcoin’s full potential to earn yield and access DeFi through a truly decentralised system, marking a breakthrough in overcoming its programmability limits.”
Unlike traditional wrapped Bitcoin solutions, Fiamma’s bridge utilises zero-knowledge proofs, covenant-based Taproot addresses, pre-signed transaction logic, and on-chain dispute resolution to preserve decentralisation and programmability.
Its architecture features a challenge–response mechanism, allowing any participant to verify transactions and contest invalid withdrawals directly on Bitcoin Layer 1, enhancing trustlessness and system integrity.
“We’ve long awaited a universal, trust-minimised BTC wrapper for our ecosystem,” said Ryan De Souza, APAC Partnership Lead at Offchain Labs. “The Fiamma bridge helps bring fresh liquidity and users, unlocking the trust-minimised Bitcoin access developers and users have been waiting for.”
To support scalability and security, Fiamma has introduced proprietary innovations to address key technical challenges, including compact verification systems, isolated asset protection, and support for flexible deposit and withdrawal.
The team also plans to offer on-chain Strategy (previously MicroStrategy)-style vault strategies, enabling users to automate Bitcoin accumulation and compounding. These features will be accessible via Fiamma One, a superapp designed to offer a user-friendly interface for earning yield, borrowing, and managing Bitcoin positions.
The Fiamma Bridge has already seen over 239,000 testnet users and 5.5 million transactions across its supported chains, indicating strong early traction.
“We’re proud to support Fiamma in bringing Bitcoin to Aptos with a trust-minimised, decentralised bridge and laser focus on product and go-to-market execution,” said Ash Pampati, Head of Ecosystem at the Aptos Foundation. “By simplifying the user experience, Fiamma is unlocking BTCfi for the mainstream.”
“Fiamma’s launch marks a real inflection point for Bitcoin utility,” added Brendon Sedo, Initial Contributor at Core DAO and Core Ventures. “They’ve unlocked a path for BTC to function as productive, self-custodied collateral across modern DeFi ecosystems.”
Fiamma Labs previously raised $4.3 million in an oversubscribed seed round, and the company aims to position Bitcoin as a foundational asset in the on-chain economy.
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