Hemi Labs
Hemi Labs builds a Bitcoin Layer-2 protocol that combines Bitcoin's security with Ethereum-grade programmability via its Hemi Virtual Machine and Proof-of-Proof consensus. It serves institutional funds, qualified custodians, and DeFi developers seeking compliant BTC yield without bridges or wrappers.
- Company typePrivate
- Founded2021
- HeadquartersNew Castle, United States
- Headcount11–50
- GTM typeB2B
- OfferingSoftware
What Hemi Labs does
Hemi Labs is a blockchain infrastructure company building a Bitcoin Layer-2 protocol that unifies Bitcoin's Proof-of-Work security with Ethereum-grade programmability. The platform's core architecture consists of the Hemi Virtual Machine (hVM), which embeds a full Bitcoin node inside an EVM-compatible runtime, and the Hemi Bitcoin Kit (hBK), which allows Solidity smart contracts to natively read and verify Bitcoin state including UTXOs, headers, and balances. All transactions are anchored to Bitcoin via the proprietary Proof-of-Proof (PoP) consensus mechanism, enabling developers to deploy Bitcoin-native DeFi applications without bridges, wrappers, or synthetic assets.
The company's business model combines transaction fees on the Hemi network with token-based economics: HEMI token holders can stake via the veHEMI governance system to direct emissions and earn rewards, while validators secure the hVM and confirm cross-chain transactions. The product surface includes four yield protocols (Spectra ~6-10% APY, River ~5-36% APY, Merkl ~4-141% APY, vFAT ~16-171% APY), a dual-custody Tunnel system connecting qualified custodians (BitGo, Coinbase Custody, Fireblocks, Anchorage) to on-chain yield, and an ecosystem of 95+ integrated protocols. Hemi serves institutional funds and treasuries, qualified custodians, DeFi developers, and exchanges, with a hybrid go-to-market combining direct enterprise sales for institutions and self-serve developer portals for protocol builders.
Hemi was conceptualized between 2021-2023 by Jeff Garzik (former Bitcoin Core developer and Bloq co-founder), Matthew Roszak, and Max Sanchez. The company launched testnet at Bitcoin 2024 in July 2024, closed a $15M seed round led by YZi (formerly Binance Labs) in September 2024, went live on mainnet in March 2025 with $440M+ TVL at launch, reached $1.2B TVL by May 2025, and closed an additional $15M round in August 2025. The legal entity, Hemispheres Service & Support Ltd., is incorporated in the British Virgin Islands, with operating presence in New Castle, United States. The team remains lean at 11-50 employees despite the scale of ecosystem partners and institutional integrations.
Hemi Labs firmographics
Firmographics- Name
- Hemi Labs
- Legal name
- Hemispheres Service & Support Ltd.
- Website
- https://hemi.xyz
- Company type
- Private
- Founded year
- 2021
- Operating status
- Operating
- Headcount range
- 11–50 employees
- Short description
- Hemi Labs builds a Bitcoin Layer-2 protocol that combines Bitcoin's security with Ethereum-grade programmability via its Hemi Virtual Machine and Proof-of-Proof consensus. It serves institutional funds, qualified custodians, and DeFi developers seeking compliant BTC yield without bridges or wrappers.
- Ownership category
- akta.pro rank
Hemi Labs industry classification
Industry- Product category
- Bitcoin Layer-2 Blockchain Infrastructure
- akta.pro primary industry
- Smart Contract Developer Platforms & Tooling (SDKs, APIs, frameworks, indexing) (FSAPAAAH)
- akta.pro secondary industries
- Interoperability & Cross-Chain Messaging (bridges, IBC, messaging, routing) (FSAPAAAE), Layer-2 (L2) / Rollup Sequencer & Validator Operations (FSADAKAB)
Keywords
Where Hemi Labs is headquartered
LocationHeadquarters
- HQ city
- New Castle
- HQ country
- United States
- HQ region
- North America
Offices1 record
Markets served
Hemi Labs business model
Business model- GTM type
- B2B
- Offering type
- Software
- Cost components
- Technology or R&D, Personnel, Infrastructure, Marketing or Sales, Operations
Revenue model
- Network Fees: Network fees are split between validators, liquidity pools, and treasury, with a portion burned to maintain deflationary pressure. Revenue is generated through transaction fees on the Hemi network.
- Validator Staking & Rewards: HEMI token stakers and validators earn rewards for securing the Hemi Virtual Machine and confirming cross-chain transactions. Used for network fees and settlement.
- veHEMI Governance Staking: Token holders stake HEMI in the veHEMI system to vote on emissions, upgrades, and protocol parameters, earning governance rewards while directing ecosystem incentives.
- Ecosystem & Liquidity Incentives: HEMI powers DeFi integrations, staking pools, and ecosystem incentives for developers, institutions, and liquidity providers to bootstrap protocols and adoption.
Pricing tiers
| Model | Billing | Price |
|---|---|---|
| Outcome Based/ Performance | Pay-as-you-go | Spectra - Permissionless yield protocol with fixed-rate pools, native BTC yield, and leveraged strategies |
| Outcome Based/ Performance | Pay-as-you-go | River - Chain-abstraction stablecoin system turning BTC into yield-generating asset |
| Outcome Based/ Performance | Pay-as-you-go | Merkl - Protocol rewards optimizer across multiple platforms |
| Outcome Based/ Performance | Pay-as-you-go | vFAT - Dashboard for tracking, optimizing, and compounding DeFi positions |
Go-to-market motion2 records
Distribution channels3 records
Marketing channels8 records
Hemi Labs product offering
Product offeringCore offering
Hemi Labs operates a dual-layer Bitcoin Layer-2 protocol that combines Bitcoin's Proof-of-Work security with Ethereum-grade programmability. At its core the platform packages the Hemi Virtual Machine (hVM) and Hemi Bitcoin Kit (hBK) to enable Solidity smart contracts to natively read and transact against Bitcoin state, while Proof-of-Proof (PoP) consensus anchors every transaction back to Bitcoin. On top of this infrastructure Hemi runs institutional yield products (Spectra, River, Merkl, vFAT) and the Hemi Tunnel dual-custody system that allows institutions to deploy native BTC into compliant yield without leaving qualified custody.
Product overview
Hemi Labs offers a unified Bitcoin economy layer that combines Bitcoin's Proof-of-Work security with Ethereum-grade programmability. The core platform consists of the Hemi Virtual Machine (hVM), which wraps a Bitcoin node in an EVM-compatible runtime, and the Hemi Bitcoin Kit (hBK), enabling Solidity contracts to read and verify Bitcoin state. These core components are complemented by yield products including Spectra (fixed-rate pools), River (stablecoin system), Merkl (multi-platform yield optimizer), and vFAT (DeFi dashboard), all accessible through Hemi's dual-custody Tunnel infrastructure. The ecosystem is powered by the $HEMI token for network security, governance, and liquidity incentives, while Proof-of-Proof consensus anchors all transactions to Bitcoin for immutable security verification.
Differentiator
Problem solved
Functional benefit
Brands
- Hemi Virtual Machine (hVM): Full Bitcoin node wrapped inside an EVM-compatible runtime, combining Bitcoin's security with Ethereum-grade programmability.
- Hemi Bitcoin Kit (hBK)
- Proof-of-Proof (PoP)
- Hemispheres Foundation
Products and services
- Spectra Permissionless yield protocol offering passive returns through fixed-rate pools, native BTC yield, and leveraged strategies, with approximately 6-10% APY; intended for institutional and crypto-native participants seeking BTC yield on Hemi.
- River Chain-abstraction stablecoin system that turns BTC into a yield-generating asset, unlocking cross-chain collateral, yield, and liquidity, with approximately 5-36% APY; targeted at users wanting BTC exposure with yield across chains.
- Merkl Yield optimization platform enabling users to claim protocol rewards and maximize yield across multiple platforms while keeping assets in their wallet, with approximately 4-141% APY; serves users seeking passive optimization of Hemi ecosystem incentives.
- vFAT Dashboard for tracking, optimizing, and compounding DeFi positions on HEMI, providing access to curated yield opportunities across protocols, with approximately 16-171% APY; targeted at yield farmers and DeFi treasury managers.
- $HEMI Token Native token powering the Hemi Network, driving network security and settlement, liquidity and yield generation, governance and upgrades (via veHEMI staking), ecosystem incentives, and cross-chain utility between Bitcoin and EVM networks; intended for validators, stakers, and ecosystem participants.
Quantifiable outcome
- $1.2B TVL reached in less than a year from mainnet launch
- +3 more outcomes
Companies that use Hemi Labs
Customer profileNamed customers7 records
Segments4 records
Ideal customer profiles4 records
Hemi Labs technology and API
TechnologyTechnology focussed Yes
API detail
- Has API
- Yes
- API docs
- API detail
Core technology
AI maturity
App detail
Integration4 records
Feature6 records
Hemi Labs partnerships and signals
Strategic signalPartnerships
15 partnerships are on record, tiered core and minor.
- BitGocoreInstitutional custody partner integrated with Hemi for secure Bitcoin custody and yield activation.
- Coinbase CustodycoreInstitutional custody partner integrated with Hemi for qualified Bitcoin custody solutions.
- FireblockscoreInstitutional custody partner integrated with Hemi for MPC wallet and multisig support.
- AnchoragecoreInstitutional custody partner integrated with Hemi for qualified custody and compliance solutions.
- RivercoreChain-abstraction stablecoin system partner turning BTC into yield-generating asset on Hemi, offering ~5-36% APY.
- StargatecoreFoundation Lead Angus Lamps endorses Hemi as enabling BTC to become fully programmable, routable asset for omnichain future.
- SpectracorePermissionless yield protocol partner offering fixed-rate pools and native BTC yield on Hemi (~6-10% APY).
- BedrockcoreCore contributor Zhuling Chen endorses Hemi's modular L2 architecture and Bitcoin-Ethereum interoperability for Bitcoin DeFi.
- Clearstar LabscorePartner using Hemi infrastructure for trustless Bitcoin-DeFi interoperability through Reactor Vault with DIA pricing.
- DIAcoreOracle provider supplying trustless blockchain pricing data for hemiBTC collateral on Morpho via Clearstar's Reactor Vault.
- Dominari HoldingscorePartnering to develop digital asset treasury and ETF platforms, bridging traditional finance with the Bitcoin economy.
- QuantstampcoreSecurity firm collaborating on blockchain security and scalability, with Quantstamp's expertise combined with Hemi's innovative approach creating strong foundation for DeFi trust.
- Pyth Data AssociationcoreOracle provider delivering real-time market data to Hemi applications, enabling pricing for institutional assets.
- Avalon LabsminorCo-founder Venus Li endorses Hemi's synergy between Bitcoin legacy, broader blockchain ecosystem, and Internet.
- SwellminorCMO Kieran Smith highlights Hemi's non-tribal vision connecting Bitcoin and Ethereum ecosystems.
Scale indicators13 records
Recent moves6 records
Expansion highlights6 records
Hemi Labs competitors and assessment
Company assessmentDirect peers
- Stacks: Stacks is the longest-running Bitcoin Layer-2 protocol, enabling smart contracts and DeFi on Bitcoin via its Proof-of-Transfer consensus. Direct competitor to Hemi in the Bitcoin programmability narrative, with similar EVM-equivalent tooling and DeFi ecosystem ambitions.
- Rootstock: Rootstock (RSK) is a Bitcoin sidechain with EVM compatibility, focused on DeFi and smart contracts on Bitcoin. Like Hemi, it pursues institutional BTC yield, smart contract deployment on Bitcoin-secured infrastructure, and Bitcoin DeFi liquidity.
- BOB (Build on Bitcoin): BOB is a Bitcoin L2 hybrid chain combining Bitcoin security with EVM compatibility and a BitVM-based bridge. Highly comparable to Hemi in its Bitcoin programmability thesis, EVM tooling, and bridge architecture targeting BTC DeFi liquidity.
- Babylon Labs: Babylon is a Bitcoin staking protocol that enables BTC to be used for securing PoS networks via restaking. Complementary to Hemi's yield thesis — Babylon captures BTC into staking while Hemi captures BTC into DeFi yield — and a key competitor for institutional BTC capital allocation.
Emerging players
- Citrea: Citrea is a Bitcoin L2 using zero-knowledge proofs to enable verifiable execution on Bitcoin. Targets the same BTC programmability market as Hemi with a different technical approach (zk vs. PoP), making it a closely watched emerging competitor.
- Alpen Labs (Strata): Alpen Labs is building Strata, a Bitcoin L2 with aBitcoin and similar Bitcoin programmability goals. Pursues institutional BTC yield use cases comparable to Hemi's Spectra, River, and Merkl products.
- Lombard Finance: Lombard is a Bitcoin liquid staking and restaking protocol that turns BTC into LBTC for use across DeFi. Pursues the same institutional BTC yield thesis as Hemi with a liquid staking rather than full L2 execution approach.
Broad incumbents
- Polygon Labs: Polygon operates a broad modular blockchain stack including Polygon PoS, Polygon zkEVM, and the AggLayer for cross-chain interoperability. While not Bitcoin-native, it competes for the same developer and institutional capital pool seeking EVM-compatible, scalable infrastructure.
- Arbitrum: Arbitrum is the largest Ethereum L2 by TVL with full EVM compatibility and a mature DeFi ecosystem. Competes with Hemi for DeFi liquidity, developer mindshare, and institutional yield-seeking capital, though on Ethereum rather than Bitcoin settlement.
- Optimism: Optimism is the OP Stack-based Ethereum L2 and steward of the Superchain vision. Competes with Hemi as a leading modular EVM-compatible execution environment, though not Bitcoin-secured.
Market position
Strengths5 records
Weaknesses5 records
Competitive moat5 records
Key risks6 records
Customer concentration
Hemi Labs social profiles
Digital presenceHemi Labs compliance and trust
Trust signalCompliance2 records
Hemi Labs financial estimates
Financial estimateRevenue estimate
Valuation estimate
Hemi Labs leadership team
Management profileNumber of profiles
Profiles8 records
Hemi Labs funding detail
Funding detailFunding overview
Funding rounds3 records
Investors30 records
Funding detail is available on the Subscription and Enterprise plan.Contact sales →
Hemi Labs M&A and investment
M&A and investmentM&A
Investments
M&A and investment is available on the Subscription and Enterprise plan.Contact sales →
Frequently asked questions about Hemi Labs
What does Hemi Labs do?
Hemi Labs operates a dual-layer Bitcoin Layer-2 protocol that combines Bitcoin's Proof-of-Work security with Ethereum-grade programmability. At its core the platform packages the Hemi Virtual Machine (hVM) and Hemi Bitcoin Kit (hBK) to enable Solidity smart contracts to natively read and transact against Bitcoin state, while Proof-of-Proof (PoP) consensus anchors every transaction back to Bitcoin. On top of this infrastructure Hemi runs institutional yield products (Spectra, River, Merkl, vFAT) and the Hemi Tunnel dual-custody system that allows institutions to deploy native BTC into compliant yield without leaving qualified custody.
Is Hemi Labs a public or private company?
Hemi Labs is a private company. It is classified as venture growth investor backed and is currently operating.
When was Hemi Labs founded?
Hemi Labs was founded in 2021. It employs 11 to 50 people.
Where is Hemi Labs based?
Hemi Labs is headquartered in New Castle, United States, in the North America region.
How does Hemi Labs make money?
Four revenue lines are on record. Network Fees are the primary driver. The others are validator Staking & Rewards, veHEMI Governance Staking and ecosystem & Liquidity Incentives.
Who are Hemi Labs's main competitors?
Direct peers on record are Stacks, Rootstock, BOB (Build on Bitcoin) and Babylon Labs. Emerging players are Citrea, Alpen Labs (Strata) and Lombard Finance. Broad incumbents are Polygon Labs, Arbitrum and Optimism.
Does Hemi Labs have an API?
Yes. Hemi provides SDKs and APIs for developers to build Bitcoin-native applications. The SDK supports wallet integration, oracle access, and cross-chain messaging. Documentation available at docs.hemi.xyz covering hVM (Hemi Virtual Machine) and hBK (Hemi Bitcoin Kit) development. The developer portal includes Quickstart guides, tutorials, and architecture documentation for deploying Solidity contracts on the Hemi network. Developer documentation is at docs.hemi.xyz/building-bitcoin-apps/introduction.
What industry is Hemi Labs in?
Hemi Labs's product category is Bitcoin Layer-2 Blockchain Infrastructure. Its primary akta.pro industry code is FSAPAAAH, Smart Contract Developer Platforms & Tooling (SDKs, APIs, frameworks, indexing), with a secondary code of FSAPAAAE, Interoperability & Cross-Chain Messaging (bridges, IBC, messaging, routing).