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At The Founder, we strive to bring you insights from the most influential minds in blockchain and finance. Today, we sit down with Thomas Chen, CEO of Function, to discuss his vision for 𝑓BTC, the transformation of Bitcoin into a hyper-liquid financial primitive, and his journey from BitGo to leading one of the most innovative projects in decentralized finance.
Thomas, tell us a bit about your background—what led you from traditional finance to crypto?
My background in traditional finance and financial technology gave me a front-row seat to how global financial infrastructure really works—and, more importantly, where it breaks. When I saw Bitcoin emerging as a non-sovereign, programmable asset, it was clear that we weren’t just witnessing a new investment category but the foundation for a parallel financial system.
At BitGo, we solved for Bitcoin custody. At Function, we’re solving for Bitcoin utility. We’re building the rails that allow Bitcoin to actually function—liquid, composable, and yield-generating. That’s what’s needed to take Bitcoin from passive reserve to financial instrument. That’s the mission.
What ultimately drew me to this space was the opportunity to bridge two worlds: the robust risk management frameworks of traditional finance and the programmable, trust-minimized infrastructure of blockchain.
You’ve worked with major institutions like BitGo. What excites you most about your new role at Function?
What's most compelling about leading Function is the opportunity to define Bitcoin can become—not just a store of value, but a functional, financial asset class in its own right.. At BitGo, we focused on solving the foundational challenge of institutional custody––eventually securing over $100 billion in assets and over $50 billion in staked assets. But that was just the first step.
With Function, we're addressing the next critical evolution: transforming Bitcoin from a static reserve asset into a dynamic financial primitive that can be efficiently deployed across all global markets. It’s a zero-to-one evolution that will fundamentally reimagine how Bitcoin functions within the global financial ecosystem.
Our north star is simple: ƒ(BTC) = Liquidity + Composability + Capital Efficiency. That’s not just a branding concept—it’s a financial equation. It reflects our belief that Bitcoin should be as useful and as integrated into capital markets as the U.S. dollar is in TradFi.
We’re not just building a product—we’re establishing the standard for Bitcoin’s role in global financial infrastructure.
Function is leading the development of 𝑓BTC. Can you explain how 𝑓BTC enhances Bitcoin’s role in DeFi?
FBTC addresses a single question: if BTC is the world's most valuable digital asset, why is it the least usable in decentralized finance?
FBTC gives Bitcoin legs. It’s 1:1 backed, omnichain, and institutionally composable. Think of it as the equivalent of a stablecoin for BTC—but purpose-built for scalability, transparency, and DeFi-native yield.
The critical innovation is that FBTC maintains Bitcoin's core properties while enabling it to function as institutional-grade capital. We’re not wrapping BTC. We’re standardizing it for utility. FBTC turns Bitcoin from a passive holding into an active, productive asset—with over $1.3B in TVL and 25+ protocol integrations already.
This is how Bitcoin scales into DeFi, structured finance, and institutional credit without compromising decentralization.
The institutional adoption of crypto has been a major topic. How does Function address the needs of large-scale investors?
Institutional capital isn’t looking for speculation—it’s looking for structure. That means security, transparency, and composability.
First, we've built purpose-designed security infrastructure incorporating multi-layer protocols and comprehensive risk management systems specifically calibrated for institutional requirements. Security and compliance are first and foremost in our product design.
Second, we've designed our smart contract architecture to maintain Bitcoin's 1:1 backing alongside transparent yield strategies and liquidity provisioning. Institutions require this level of transparency and assurance to deploy capital at scale.
Finally, our omnichain infrastructure enables seamless integration across major blockchain ecosystems, including Ethereum, Base, Arbitrum, and Mantle. This allows institutions to optimize capital efficiency and yield across multiple environments without fragmenting Bitcoin exposure.
With partners like Galaxy Digital joining as core contributors and investors, we're solidifying the institutional foundation for Bitcoin's integration into global financial markets.
Security and transparency are critical in DeFi. How does Function ensure the safety and integrity of its platform?
Trust isn’t granted—it’s engineered. That’s the philosophy behind Function.
Our security council, which now includes Galaxy Digital as a core member alongside other institutional partners, provides robust oversight of risk frameworks and protocol security.
Transparency is equally critical. Unlike opaque wrapped assets, FBTC is designed for full verifiability in trust-minimized environments. This means institutional participants can independently verify Bitcoin backing and monitor protocol operations without relying on centralized intermediaries.
By ensuring Bitcoin liquidity is transparent, auditable, and fully backed, we're setting the standard for institutional-grade, decentralized finance that preserves both security and capital efficiency.
Bitcoin has traditionally been seen as a store of value rather than a financial instrument. How do you see its role evolving in DeFi?
Bitcoin as “digital gold” was a narrative that served a purpose—but it’s incomplete. Financial assets gain relevance through utility, not just scarcity.
Gold became useful once it was integrated into financial systems. Bitcoin is going through that same arc.
FBTC is how we close the loop—by turning BTC into a productive, liquid financial primitive that can power on-chain capital markets. It’s not a deviation from Bitcoin’s mission—it’s the logical next step.
How does Function differentiate itself from other Bitcoin-based yield solutions in the market?
Most Bitcoin DeFi solutions are narrow—they solve one use case, eg. on a specific chain. What you end up with is fragmented liquidity across the ecosystem which makes it hard for institutions to manage capital efficiency. We’re building foundational unified liquidity around a single asset, FBTC.
FBTC is omnichain, institutional-grade, and built to scale. It’s the first Bitcoin primitive that behaves like a yield-bearing composable asset, not just a bridge token.
The difference is in the design: composability, security, and liquidity are native to FBTC, not bolted on.
Mantle is positioning itself as a leader in institutional-grade blockchain finance. How does Function fit into that broader vision?
Mantle’s focus on high-performance, institutionally-aligned infrastructure makes it a natural fit. Their Layer 2, treasury, and product stack give FBTC the perfect launchpad for institutional DeFi.
As Mantle builds out products like the Enhanced Index Fund and Mantle Banking, FBTC becomes the reserve asset that powers it all.
This is the convergence of Bitcoin, DeFi, and institutional finance—at real scale.
What are some key milestones or developments we can expect from Function in 2025?
We’re expanding beyond infrastructure to enable full-stack financial products to be built with FBTC: structured BTC yield strategies, institutional-grade liquidity access, and seamless composability across major DeFi ecosystems.
But the core remains FBTC. It’s not just our product—it’s the standard for Bitcoin liquidity, and it’s setting the benchmark for how Bitcoin will function in the financial systems of the future.
Lastly, for aspiring entrepreneurs looking to enter the crypto space, what’s one piece of advice you’d share?
The beauty of crypto and decentralized finance is that it’s a truly borderless economic sandbox that provides real-time feedback. If you want to build a new financial primitive, protocol, or app, you’ll have immediate global accessibility and response at launch. This also means that crypto is heavily narrative-driven, with its attention shifting every few seasons or so. So figure out what part of this economic sandbox you enjoy and want to play in, and dive in.
As Function spearheads the transformation of Bitcoin in decentralized finance, Thomas Chen is leading the charge in making institutional adoption a reality. His insights offer a glimpse into how Bitcoin, DeFi, and traditional finance are converging. Stay tuned for more exclusive conversations on The Founder.
