The Bitcoin ecosystem is undergoing a transformative evolution, driven by innovations that expand its functionality beyond simple transactions. At the forefront of this movement is Merlin Chain, a next-generation Bitcoin Layer 2 network developed by Bitmap Tech, now in strategic collaboration with Cobo, a global leader in digital asset custody solutions. This partnership marks a significant milestone in enhancing security, scalability, and user experience across Bitcoin’s expanding ecosystem.
Introducing Merlin Chain: Reviving Bitcoin’s Potential
Merlin Chain is not just another Layer 2 solution—it’s a mission-driven platform designed to Make Bitcoin Fun Again. As a subsidiary of Bitmap Tech, an OG team with a market capitalization exceeding $500 million, Merlin Chain builds on proven expertise in Bitcoin-native assets. The team’s BRC-420 "Blue Box" collection has already gained widespread recognition as one of the most sought-after Ordinals assets, signaling strong community trust and technical capability.
Leveraging advanced technologies such as ZK-Rollup networks, decentralized oracle networks, and on-chain BTC fraud proof modules, Merlin Chain enables seamless interaction with Bitcoin’s native assets, protocols, and Layer 1 products. By bridging these assets to Layer 2, Merlin Chain unlocks faster transactions, reduced fees, and enhanced programmability—without compromising Bitcoin’s core principles of decentralization and security.
👉 Discover how secure infrastructure powers next-gen Bitcoin innovation.
Securing the Future with MPC Wallet Technology
One of the most critical challenges in any blockchain ecosystem is asset security—especially when cross-chain bridges and smart contracts are involved. To address this, Merlin Chain has integrated Cobo’s MPC Co-Managed Custody solution, a cutting-edge multi-party computation (MPC) wallet system that ensures all funds remain non-custodial and highly secure.
Unlike traditional custody models where private keys are stored in a single location—creating a single point of failure—Cobo’s MPC-TSS (Threshold Signature Scheme) approach distributes encrypted key shares across multiple independent parties. These shares are generated in isolated secure environments and never exposed during transaction signing. This means no single entity ever holds the complete private key, drastically reducing risks from hacking, insider threats, or operational errors.
When users engage in cross-chain transfers or airdrop lockups via Merlin Chain, their Bitcoin Layer 1 assets are securely deposited into an MPC wallet co-managed by Cobo and Merlin Chain. Every transaction must pass rigorous risk assessment policies enforced by both teams before signatures are authorized. This dual-layer verification process ensures institutional-grade security without sacrificing usability.
Institutional-Grade Security Meets Decentralized Innovation
Cobo’s role extends beyond basic custody. As the world’s first omni-custody platform, Cobo offers a full suite of solutions including custodial and non-custodial wallets, Wallet-as-a-Service (WaaS), DeFi management tools like Argus, and the off-exchange settlement network SuperLoop. Trusted by over 500 institutions managing billions in digital assets, Cobo brings battle-tested infrastructure to Merlin Chain’s ambitious roadmap.
This collaboration sets a new benchmark for secure decentralized finance (DeFi) on Bitcoin. With Cobo’s ISO27001 certification, SOC2 Type 1 and Type 2 compliance, and regulatory licenses across four jurisdictions, Merlin Chain gains immediate credibility in both institutional and retail markets.
“We are delighted that Bitmap Tech has chosen Cobo as its preferred digital asset wallet technology solution,” said Changhao Jiang, Co-Founder and CTO of Cobo. “This partnership aims to provide Merlin Chain with a state-of-the-art, institutional-grade, non-custodial wallet infrastructure. We eagerly anticipate deeper collaborations with Bitmap Tech. By working together, we can amplify breakthroughs across the Bitcoin ecosystem, unlocking the full possibilities of this network.”
Expanding Support for Native Tokens
Looking ahead, Cobo’s custody solution will expand to support native tokens on Merlin Chain, enabling users to securely store, manage, and transact within the growing ecosystem. Whether participating in yield-generating protocols, NFT marketplaces, or governance mechanisms, users will benefit from a seamless and robust digital asset management experience powered by enterprise-grade security.
This integration is particularly significant as more developers build decentralized applications (dApps) on Bitcoin’s emerging Layer 2 landscape. With secure custody infrastructure in place, projects can focus on innovation rather than risk mitigation.
Core Keywords Driving Bitcoin Innovation
This strategic alliance revolves around several core keywords that reflect its technological and market significance:
- Bitcoin Layer 2
- MPC custody
- non-custodial wallet
- ZK-Rollup
- digital asset security
- cross-chain bridge
- Ordinals assets
- institutional-grade custody
These terms not only define the technical foundation of Merlin Chain but also align with growing search demand from developers, investors, and institutions exploring scalable and secure Bitcoin solutions.
👉 See how top-tier custody solutions enable secure Layer 2 ecosystems.
Frequently Asked Questions (FAQ)
Q: What is a Bitcoin Layer 2 network?
A: A Bitcoin Layer 2 network operates on top of the Bitcoin blockchain to enhance scalability and functionality. It allows for faster and cheaper transactions while inheriting the security of Bitcoin’s base layer.
Q: How does MPC custody improve security?
A: Multi-Party Computation (MPC) splits private keys into multiple encrypted shares distributed among trusted parties. No single party ever has full access, eliminating single points of failure and significantly reducing attack surfaces.
Q: Is Merlin Chain custodial or non-custodial?
A: Merlin Chain uses a non-custodial model powered by Cobo’s MPC technology. Users retain control over their assets at all times, with transactions requiring multi-party approval for added security.
Q: Can I use Merlin Chain if I’m not a developer?
A: Yes. While Merlin Chain supports developer-built dApps, its user interfaces are designed for accessibility by both technical and non-technical users alike—especially those interacting with Ordinals, BRC-20 tokens, or DeFi protocols.
Q: What are ZK-Rollups and why do they matter?
A: ZK-Rollups bundle multiple transactions off-chain and submit cryptographic proofs to the main chain. This reduces congestion, lowers fees, and maintains security—making them ideal for scaling Bitcoin.
Q: Will Cobo support future Merlin Chain tokens?
A: Yes. Cobo plans to fully integrate support for native Merlin Chain tokens, allowing secure storage and management through its institutional-grade custody platform.
👉 Explore secure access to emerging blockchain ecosystems today.
A New Era for Bitcoin Ecosystems
The partnership between Cobo and Bitmap Tech represents more than a technical integration—it signals a broader shift toward secure, scalable, and user-centric innovation on Bitcoin. By combining Merlin Chain’s visionary Layer 2 architecture with Cobo’s battle-proven MPC custody infrastructure, the project delivers a compelling answer to one of crypto’s toughest challenges: how to scale securely without compromising decentralization.
As Bitcoin continues to evolve from a store of value to a platform for decentralized applications, collaborations like this will shape the future of digital ownership. With robust security, seamless cross-chain functionality, and growing support for native assets, Merlin Chain is positioned to become a cornerstone of the next wave of Bitcoin innovation.
For users, developers, and institutions alike, the message is clear: the future of Bitcoin is not just secure—it’s fun again.