Across Protocol, an interoperability-focused Ethereum bridge, has raised $41 million in a token sale round to strengthen its role in connecting Ethereum with Layer 2 networks. The round was led by Paradigm, with Bain Capital Crypto, Coinbase Ventures, Multicoin Capital, and angel investor Sina Habinian also participating.
The funding was secured in two phases, one in Q2 2024 and another in Q4 2024, according to Hart Lambur, co-founder of Risk Labs, the foundation behind the Across and UMA protocols. The raised capital is expected to enhance Across’s infrastructure, boost liquidity, and improve transaction efficiency as Layer 2 adoption accelerates.
To secure funding, Risk Labs sold ACX tokens to investors but did not disclose the sale price or valuation. However, Across Protocol’s recent announcement indicated that the vesting schedule for investors includes various one-year cliff unlocks running through November 2025.
With this new round, Across has now raised a total of $51 million, following its $10 million token round in November 2022, which valued the project at $200 million.
The ACX token currently has a fully diluted valuation of $225 million, with a market capitalization of $98 million. However, ACX is down approximately 18% in the past 24 hours, trading at around $0.23, reflecting broader market volatility.
Enhancing Cross-Chain Interoperability
Across Protocol is a next-generation interoperability solution designed to simplify cross-chain transactions by allowing users to swap tokens, transfer assets, and interact with smart contracts seamlessly through a single request. The protocol executes transactions behind the scenes, eliminating the complexity of managing multiple chains manually and ensuring a smooth user experience across Ethereum and its Layer 2 ecosystems.
As Ethereum’s ecosystem expands, users increasingly face challenges navigating fragmented networks across Layer 2 solutions like Arbitrum, Optimism, and Base. According to Hart Lambur, co-founder of Risk Labs, which oversees Across and UMA protocols, this fragmentation is a major roadblock to mainstream adoption.
“The reality is that users today are juggling multiple chains and dealing with Ethereum’s fragmentation — this needs to change,” Lambur told TheBlock.
“The next billion Ethereum users won’t tolerate waiting to onboard into new apps or platforms – they need a fast, seamless experience moving between chains in just two seconds, not two minutes. Ethereum must feel like a unified network, no matter how many chains are involved, and that has been our mission from the start.”
The infusion of $41 million is expected to bolster the protocol’s infrastructure, improve transaction speeds, and enhance security measures, thereby attracting a broader user base and fostering greater integration with other DeFi platforms.
Across Protocol has processed $19 billion in total cross-chain transaction volume, including $1 billion in January alone. With its recent $41 million funding round led by Paradigm, the project aims to accelerate the adoption of ERC-7683 and further support Ethereum’s rollup-centric scaling strategy.
As Ethereum’s Layer 2 ecosystem continues to expand, bridges like Across will play a crucial role in making the network feel more unified and efficient for both developers and users.
Quick Facts
- Paradigm leads a $41 million token round for Across Protocol, aiming to enhance its cross-chain bridging capabilities.
- Across Protocol facilitates swift and secure asset transfers between Ethereum and Layer 2 networks, addressing interoperability challenges in DeFi.
- The investment aligns with Paradigm’s focus on supporting innovative DeFi solutions that enhance scalability and usability across blockchain ecosystems.
