Mezo, a Bitcoin (BTC) layer-2 (L2) network, recently announced its emergence from stealth mode after securing $21 million in venture capital funding. Pantera Capital led the funding round, with support from Multicoin, Hack VC, ParaFi Capital, Nascent, Draper Associates, Primitive Ventures, and Asymmetric Ventures, as well as individual investors like Dan Held, Tim Draper, and the pseudonymous DCF God.

Thesis, a blockchain venture studio behind Mezo, confirmed the successful fundraising round earlier this week. The platform operates as a permissionless Bitcoin economic layer, utilizing a neutral smart contract framework to provide various applications. Mezo is part of the recent wave of Bitcoin L2 networks, aiming to expand its utility beyond just trading. Other notable counterparts include Babylon and Stacks, which offer features like staking for Bitcoin users.

Thesis initiated the fundraising campaign for Mezo in December 2023, leading to the closure of the $21 million round. Mezo functions as a “permissionless Bitcoin economic layer,” leveraging a neutral smart contract infrastructure to facilitate various user applications. The platform’s design focuses on enhancing Bitcoin’s infrastructure, enabling cost-effective and swift transactions across various domains, promoting a dynamic circular economy.

One standout feature of Mezo is its “Proof of HODL” points program, which incentivizes users to actively engage with their Bitcoin holdings on the platform. CEO of Thesis and founder of Mezo, Matt Luongo, highlighted the platform’s goal of transforming Bitcoin holdings from idle assets to actively engaged assets within the network, rewarding users for contributing to network security.

Mezo will introduce a Bitcoin-backed Ethereum (ETH) token, tBTC, allowing users to participate in Ethereum’s decentralized finance (defi) ecosystem while holding Bitcoin. In the wake of the successful funding round, Mezo now reports a total value locked (TVL) exceeding $75 million, with over a thousand active addresses.

This funding milestone for Mezo aligns with the growing interest of venture capitalists in the crypto space. Global investors injected $2.5 billion into crypto startups during the first quarter of 2024, according to PitchBook data. Venture capital interest in the crypto sector remains strong as innovations like Mezo continue to shape the future of finance.

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