Arch Labs, the creators of the Bitcoin-focused application platform Arch, secured $7 million in a startup funding event. Leading the investment was Multicoin Capital, a venture capital company, marking a rare venture into Bitcoin for them. Other backers included Portal Ventures, OKX Ventures, Big Brain Holdings, CMS Holdings, and Tangent, as announced by Arch on Thursday.

The fundraising, initiated in March and concluded swiftly in April, saw an overwhelming interest from investors, according to Matt Mudano, co-founder of Arch. The funding was structured as a Simple Agreement for Future Equity (SAFE) with token warrants, although Mudano declined to disclose the valuation.

Arch positions itself as the premier Bitcoin-centric application platform, introducing direct trading on the Bitcoin blockchain without the need for intermediary bridges. Unlike many Layer 2 solutions, Arch does not require users to transfer assets to a separate network, preserving custody and trust assumptions.

Matt Mudano stressed that Arch distinguishes itself by prioritizing user custody, a departure from conventional Bitcoin Layer 2 networks. Developers can seamlessly deploy applications on Arch, facilitated by the ArchVM built entirely in Rust, a programming language similar to Solana.

ArchVM, heavily inspired by Solana, offers developers a more accessible alternative to Bitcoin script. Furthermore, Arch-based applications promise ease of use for users, irrespective of their Bitcoin wallet preference. Users can engage with Arch applications without the hassle of asset bridging or specialized wallets, improving the overall user experience.

In summary, Arch's innovative approach to Bitcoin-native application deployment has attracted significant investment interest, positioning it as a promising player in the evolving cryptocurrency ecosystem.