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Figure Heloc Hotstuff Labs Unveils DeFi-Native Layer 1 Linking On-Chain Markets to Global Fiat Access
Ryan Moore 
Hotstuff Labs has launched the public testnet for Hotstuff, a DeFi-first Layer 1 blockchain built to merge on-chain trading with real-world settlement. Using DracoBFT, a custom consensus protocol, Hotstuff combines a high-performance order book with a programmable routing layer that connects directly to global banking and fiat rails.
Validators as Financial Access Points
Hotstuff’s biggest distinction is its role for validators. Instead of only securing the network, validators can operate as permissioned financial service providers, enabling fiat on/off-ramps, stablecoin access, payment rails, FX settlement, card issuance, and regional banking services. The chain effectively treats these validators like routed service providers, matching them to users based on licensing, regional support, and performance.
The company launches with backing from major investors such as Delphi Digital, Dialectic, Stake Capital, Tykhe Ventures, and founders from top Web3 protocols including 1inch, Safe, Biconomy, and Socket. Their support reflects growing market demand for infrastructure that brings decentralised trading and compliant financial connectivity into one programmable layer.
Today, DeFi platforms, stablecoins, and fiat providers operate in separate ecosystems, relying on clunky integrations and fragmented compliance. Hotstuff moves the responsibility for connecting these rails away from app developers and into the base protocol itself, where validators plug into regulated infrastructure and are verified using lightweight zero-knowledge proofs.
Stake Capital Group founder Julien Bouteloup said the model reshapes how settlement and access work across networks. “Hotstuff Labs is building a performant chain that links trading, payments, and real-world settlement into one coherent layer. The vision is to enable validators to become active financial access points. That aligns perfectly with how we see the future of infrastructure: decentralised, compliant, and directly plugged into the global economy.”
A Routing Layer for Money, Not Just Blocks
Because validators compete on service quality instead of just block production, a validator in Europe could issue debit cards or support SEPA payments, while one in Southeast Asia could enable remittance corridors or local banking support. The chain routes users to the right validator automatically based on stake, performance history, service quality, and trustless proofs of off-chain actions.
Vyom Sharma, Co-Founder and CEO of Hotstuff Labs, said the chain treats financial access as a first-class protocol function. “Most chains validate blocks. Hotstuff validates and delivers trustless access to money. It’s the Uber for financial validators, routing every flow to the right provider,” he said. Sharma added that the goal is a unified fabric where “a trader in Asia, a remittance corridor in LATAM, and a card issuer in Europe” can operate on one network without leaving the chain.
Public Testnet Now Live
Traders can now experiment with perpetual and spot markets built directly into the Hotstuff Layer 1, while builders and fintech companies can test payment, FX, and settlement infrastructure. Validators are being invited to run DracoBFT nodes and explore financial modules that plug directly into the protocol.
As DeFi pushes deeper into real-world financial rails, Hotstuff is betting on a future where settlement and access are baked into the chain itself. The testnet launch marks an early step toward a blockchain that doesn’t just exchange assets, but natively routes money across borders and into everyday financial systems.
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