Imagine a world where large-scale cryptocurrency trades across different blockchains occur instantly and without intermediaries, reducing risks associated with custody or wrapped assets. This vision is becoming reality through innovations like those from Portal to Bitcoin, a protocol focused on Bitcoin-native interoperability. Bitcoin-native interoperability protocol Portal to Bitcoin has raised $25 million in funding alongside the launch of its Atomic OTC desk, designed for instant, trustless cross-chain settlement of large block trades. The funding round, announced on December 4, 2025, was led by digital asset lender JTSA Global. Previous backers include Coinbase Ventures, OKX Ventures, and Arrington Capital. The Atomic OTC desk draws parallels to cross-chain atomic swaps used by platforms such as THORChain and Chainflip, as well as Bitcoin-focused systems like Liquality and Boltz. However, Portal to Bitcoin differentiates itself by targeting the Bitcoin (BTC)-anchored cross-chain OTC market for institutions and high-volume traders. “Portal provides the infrastructure to make Bitcoin the settlement layer for global asset markets, without bridges, custodians, or wrapped assets,” stated Chandra Duggirala, founder and CEO of Portal.
Native Assets and Non-Custodial Design
Portal to Bitcoin employs Hashed Timelock Contracts (HTLCs) across multiple chains and Bitcoin Taproot contracts to facilitate swaps of native BTC for native assets on integrated blockchains. This non-custodial approach minimizes trust assumptions, ensuring that either both parties complete the exchange or recover their original assets if the process fails. At its core is BitScaler, a layer-3 solution resembling the Lightning Network, built atop Bitcoin using Taproot and policy templates. It establishes channels similar to Lightning channels, featuring a hub-and-spoke model where a validator federation acts as the hub and liquidity providers as spokes. Trades within these channels are secured via HTLCs, allowing users to interact solely with native assets on their respective chains. Duggirala explained to Cointelegraph that while atomic swaps exist, systems like THORChain and Chainflip rely on vaults that take custody of funds controlled by validators, potentially exposing them to risks if validators act maliciously. In contrast, Portal to Bitcoin’s HTLC-based design avoids such custody, and tools like Liquality and Boltz, though similar, function more as one-off swap mechanisms rather than a comprehensive liquidity layer with pooled resources.
Security and Validator Structure
PortalOS, the underlying system, includes a Notary Chain built on the Ethereum Virtual Machine on Cosmos (EVMOS), operated by validators known as Portal Guardians. Initially, the network has 42 validator slots, recently expanded to 150, with a minimum of 21 validators required. Selection occurs through a permissionless PBT staking auction, though the current set is permissioned for node software management, with open auctions planned for later. According to documentation, validators do not control vaults or liquidity pools; their role is limited to matching buyers and sellers without handling fund flows. They manage the Lightning hub, notary chain state (including pricing, liquidity accounting, trade matching, and cross-chain contracts for the protocol’s token), and will support an automated market maker (AMM) as the system evolves from its order book model. While validators cannot seize or freeze user assets, they could potentially censor or delay swaps, misprice markets, or disrupt the AMM if compromised. The system ensures fund recovery if HTLCs expire mid-swap. The Portal to Bitcoin team includes co-founder and CTO Manoj Duggirala, founder and CEO Chandra Duggirala, and co-founder George Burke.
Broader Implications for DeFi and Bitcoin Adoption
This development aligns with ongoing efforts to enhance Bitcoin’s utility in decentralized finance (DeFi), such as Anchorage Digital’s expansion of HYPE staking services and Threshold’s upgraded bridge for institutional BTC in DeFi. By enabling native, trustless swaps, Portal to Bitcoin could lower barriers for institutional participation, potentially channeling more liquidity into Bitcoin-anchored markets. As Bitcoin’s role in global asset settlement grows, protocols like this address key challenges in cross-chain interoperability, fostering greater adoption without relying on centralized custodians. How might integrating atomic OTC desks like Portal’s influence your approach to cross-chain trading in a multi-asset portfolio?
