Symbiotic and Arch: The Next Wave of Companies Redefining Blockchain Infrastructure
VeradiVerdict - Issue #328
Symbiotic and Arch Network, Pantera’s most recent investments, are tearing down blockchain’s biggest barriers: programmability and security. Symbiotic transforms staking into a universal, cross-chain security framework while Arch Network enables decentralized finance on Bitcoin through native smart contracts. These projects aren’t just building infrastructure—they’re making it user-friendly and scalable, creating a blockchain ecosystem that’s as functional as it is secure.
Symbiotic: Scaling Blockchain Security
Symbiotic is taking staking out of the shadows and into the spotlight, making blockchain security more flexible and more powerful. Traditionally, networks issue and stake new tokens—a costly and slow process. Symbiotic changes the game by enabling networks to pool security from established ecosystems, reducing the need for new token issuances. For stakers, it offers compounding rewards through restaking.
Symbiotic’s Universal Staking Framework takes this a step further, allowing any combination of cryptocurrencies to secure networks, including monolithic and modular layer-1 and layer-2 blockchains. In my most recent conversation with co-founder Misha, he stated that “The shared security before and universal staking now has a thesis of you’re not alone anymore. Like you’re not siloed. You’re not like this part of the journey should not be really hard because a lot of people are actually going through that.”
On a high level, Symbiotic is the ultimate wingman for blockchain security. It enables networks—from Layer 1 blockchains to Layer 2 solutions—to bootstrap sovereign ecosystems by leveraging economic security from staked assets. At its core, Symbiotic facilitates restaking, where tokens like Ethereum are repurposed and staked across multiple networks. Its architecture includes:
Vaults: Specialized smart contracts where stakers deposit funds, managed by curators who handle delegation decisions.
Immutable Core Contracts: These eliminate governance risk, providing builders with control over shared security agreements without unnecessary permissioning.
Customizable Mechanisms: Networks can adapt punishment and reward structures.
To learn more about Symbiotic check out my conversation with Misha Putiatin, co-founder of Symbiotic.
Symbiotic Investment
We led Symbiotic’s $29 million Series A with participation from Coinbase Ventures. We’re thrilled about Symbiotic’s game-changing take on staking, making blockchain security flexible and open to all. Co-founder Misha Putiatin’s vision breaks free from old-school staking limits, letting networks evolve with customizable, permissionless models that support any ERC-20 token. With over 33.8 million ETH staked by February 2025, Symbiotic’s timing is spot-on.
Arch Network: Scaling Bitcoin’s Programmability
Arch Network is a Bitcoin-native execution layer that brings full programmability to Bitcoin’s $1.6 trillion asset base. By enabling secure, trust-minimized smart contracts without bridges or wrapped assets, Arch makes it possible to build scalable DeFi directly on Bitcoin’s base layer.
Arch addresses Bitcoin’s long-standing programmability gap and lays the foundation for a new era of Bitcoin-denominated financial applications.
Arch is rewriting Bitcoin’s story, proving the old dog can learn new tricks—and lucrative ones at that. Arch’s SVM-modified architecture, inspired by Solana’s virtual machine, supports Turing-complete smart contracts for complex protocols like lending and stablecoins, overcoming Bitcoin’s limited scripting language. It operates bridgelessly on Bitcoin’s base layer, using a FROST + ROAST scheme and Proof-of-Stake Verifier Network for trust-minimized execution
Arch also integrates with Bitcoin wallets like Xverse and Magic Eden, ensuring interoperability with existing infrastructure. Projects like SaturnDEX and Wasabi are already building on Arch, with developers migrating from EVM-based Layer 2s due to its security.
Arch Investment
We led Arch’s $13 million Series A, as we support their goal to scale Bitcoin’s functionality. By partnering with trusted custodians like Anchorage, we believe Arch Network is creating the opportunity for institutional adoption, which helps Bitcoin’s appeal to big players. Meanwhile, the platform’s ability to boost network activity is set to strengthen Bitcoin’s long-term security by driving transaction fees, keeping the ecosystem thriving. Leading the charge are CEO Matt Mudano, a crypto enthusiast since mining Bitcoin in 2012, and CTO Amine ElQaraoui, a Bitcoin Script expert.
Conclusion
Symbiotic and Arch are pushing blockchain into exciting new territory. Arch is opening up Bitcoin for DeFi, paving the way for a massive $400 billion on-chain economy with next gen financial products. Meanwhile, Symbiotic is redefining staking, creating a universal security layer that’s already powering over 35 networks.
Together, we are dismantling barriers to adoption, blending security, accessibility, and innovation. By backing Symbiotic and Arch, Pantera is not just investing in projects—we’re making blockchain accessible for billions.
- Paul Veradittakit
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LETS MEET UP
New Orleans, April 28-29
Los Angeles, May 4-6
Toronto, Consensus, May 14
Montreal, May 15-16
ABOUT ME
Hi, I’m Paul Veradittakit, a Managing Partner at Pantera Capital, one of the oldest and largest institutional investors focused on investing in blockchain companies and cryptocurrencies. I’ve been in the industry since 2014, and the firm invests in equity, early-stage token projects, and liquid cryptocurrencies on exchanges. I focus on early-stage investments and share my thoughts on what’s going on in the industry in this weekly newsletter.
If you have any projects that need funding, feel free to DM me on twitter.
Thanks Paul! Excited about Symbiotic.
I have wstETH in their pre-deposit vault, but it's not clear to me which actively delegated vault I should be using.
Are there any that you would suggest ?