Crypto Financial Service Providers Expand Bridge to Traditional Finance

Swiss Provider Enables Bank Payments Directly from Wallet

Swiss crypto service provider Mt Pelerin has unveiled a new feature that connects self-custodied wallets with the traditional banking system. With the personal crypto IBAN, users can assign their own euro or Swiss franc IBAN to a self-custodied wallet—such as Ledger, MetaMask, or the company's own Bridge Wallet ^[1].

The system automatically converts incoming transfers into cryptocurrencies, while outgoing payments are executed directly from the wallet. For both senders and recipients, the transaction appears as a standard bank transfer—with crypto processing occurring in the background ^[1].

"A wallet with a personal IBAN becomes a practical substitute for a bank account—without custody risk from third parties," the company stated in its announcement ^[1]. Mt Pelerin, which was financed in 2018 through an equity token offering, sees this development as a milestone for its vision of making self-custody practical for everyday use ^[1].

Portal to Bitcoin Raises $25 Million

Concurrently, Portal to Bitcoin, a Bitcoin-native interoperability protocol, has raised $25 million in a funding round. The round was led by digital lender JTSA Global and follows earlier investments from Coinbase Ventures, OKX Ventures, and Arrington Capital ^[2].

Alongside the funding announcement, the company has launched its Atomic OTC trading platform, which promises "immediate, trustless cross-chain settlement of large block trades" ^[2]. The service targets institutional investors and large-scale traders and distinguishes itself from similar offerings through its focus on Bitcoin as a settlement layer.

Technology Without Custody Risk

"Portal provides the infrastructure to make Bitcoin the settlement layer for global asset markets—without bridges, custodians, or wrapped assets," explained Chandra Duggirala, founder and CEO of Portal ^[2].

The system utilizes Hashed Timelock Contracts (HTLCs) across multiple blockchains as well as Bitcoin Taproot contracts to exchange native BTC against native assets on integrated blockchains ^[2]. The HTLCs ensure that either both parties complete the exchange or both recover their original assets.

Portal relies on BitScaler, a Layer-3 solution similar to the Lightning Network that builds on Bitcoin and leverages Taproot. The system opens channels following a hub-and-spoke model, where a validator federation forms the hub and liquidity providers form the spokes ^[2].

Validation and Security

PortalOS features a Notary Chain built on the Ethereum Virtual Machine on Cosmos (EVMOS) and validated by so-called Portal Guardians. The network currently comprises 42 validator slots, which Duggirala stated have been increased to 150 ^[2].

Duggirala acknowledged that the initial validator group currently requires permission: "We have intentionally restricted and kept the initial validator group concentrated on known entities for the simple reason of node software management" ^[2]. Permissionless auctions are planned for later implementation.

According to documentation, the small number of validators was a deliberate choice and poses no problem because they do not control vaults or liquidity pools. "The only function of validators in the DEX is to connect a buyer and a seller or one party with another. They do not control the flow of funds," Duggirala explained ^[2].

Bridge Without Compromise

Both developments highlight a trend in the crypto industry: creating bridges to traditional finance without abandoning the core principles of self-custody and decentralization. While Mt Pelerin aims to simplify daily life for individual users, Portal targets institutional market participants.