LEXR Finance Partners with Acurast to Enhance Security and Automation for tzBTC 2.0 on Tezos

Introduction

[Zug, Switzerland, June 27, 2024] — LEXR Finance has entered into a strategic partnership with Acurast, enhancing the management and security of tzBTC, a wrapped Bitcoin on the Tezos blockchain. This collaboration allows LEXR Finance, as a keyholder and Gatekeeper of tzBTC, to facilitate the trustless and automated minting and burning of tzBTC.

Enhancing Accessibility with tzBTC 2.0

tzBTC enables users to activate their Bitcoins on other blockchains in a decentralized, transparent, and compliant manner. Previously, acquiring tzBTC was a complex process involving Bitcoin custody by trusted institutions known as Keyholders, who managed tzBTC’s supply. Gatekeepers conducted KYC and AML checks, ensuring compliance and transparency. However, tzBTC 2.0 addresses past limitations, making the process more accessible and user-friendly.

Acurast’s Role in Automating tzBTC

The tzBTC bridge is built on Acurast’s confidential compute, facilitating the bridging from native Bitcoin (BTC) to tzBTC. Users send BTC to a Bitcoin Redeem-Script governed by the Keyholders and their Acurast Processors, who verify the transaction on the Bitcoin network. Once confirmed, Acurast Processors sign a minting transaction on the tzBTC contract on Tezos. This automation enhances the security and efficiency of tzBTC’s processes.

Automated Security and Compliance

Acurast’s execution environment utilizes secure elements within mobile devices to prevent interference or manipulation of the automation logic, even by the operator (the Keyholder) with physical device access. Gatekeepers conduct KYC & AML checks, ensuring institutional-grade Bitcoin DeFi while maintaining security and compliance.

Quotes from Leaders

Max Krähenbühl from LEXR Finance highlights, “Acurast’s flexibility and security have enabled tzBTC 2.0. Not only are the native Bitcoin flows now fully automated, but our KYC and AML requirements are also completely met, allowing for institutional-grade Bitcoin DeFi.”

Alessandro De Carli, Co-Founder of Acurast, adds, “It’s amazing to see how Acurast’s technology can be leveraged in novel applications like tzBTC, and with the right partners like LEXR, creating a seamless value chain and pushing the boundaries of Bitcoin DeFi.”

Final Thoughts

The partnership between LEXR Finance and Acurast represents a significant advancement in the management and security of wrapped Bitcoin on Tezos. By automating security-sensitive processes and ensuring compliance, tzBTC 2.0 offers a cost-effective and secure solution for Bitcoin DeFi.