Financial technology firm, Portal, has successfully raised $34 million in seed funding. The funding aims to facilitate the development of atomic swaps technology for Bitcoin. The initiative has attracted backing from notable investors such as Coinbase Ventures, Arrington Capital, OKX Ventures, and Gate.io.
Portal is in the process of developing a solution that allows for peer-to-peer Bitcoin swaps across various blockchains. This innovative approach eliminates the need for bridges or wrappers by utilizing its unique swapping layer.
Atomic swaps are a groundbreaking technology that allows for the exchange of one cryptocurrency for another without the need for a trusted third party, like a centralized crypto exchange. The term “atomic” refers to the fact that the trade is either fully completed, with both parties receiving their respective assets, or not executed at all.
Addressing Risks in Crypto Exchanges
Portal’s co-founder and CEO, Chandra Duggirala, highlighted the risks associated with centralized exchanges. He stated, “From the early days of Mt. Gox to FTX, centralized exchanges have consistently posed a risk to user funds. While the risk persists, it has now morphed into a new form in bridges and other custodial cross-chain solutions.”
Following an $8.5 million angel round in September 2021, Portal’s latest funding will be channeled towards the development of its two main products: a decentralized exchange and a noncustodial crypto wallet. Other companies offering similar solutions through atomic swaps include Komodo Wallet, previously known as AtomicDEX, and Liquality.
Portal’s future plans also include an AI-powered co-pilot for investment strategies and an API integration tool for wallets and decentralized applications. With the recent introduction of the Ordinals protocol and the approval of spot Bitcoin exchange-traded funds in the United States, demand for Bitcoin-linked solutions is expected to surge in the coming months.
Dora Yue, founder of OKX Ventures, praised Portal’s innovative approach, stating, “Portal is carving a unique niche in the evolving Bitcoin landscape, crafting an innovative cross-chain private DEX protocol that masterfully addresses the complexities and risks of both centralized and decentralized exchanges.”