- Litecoin launches LitVM, its first zero-knowledge Layer-2 chain with EVM compatibility.
- LitVM enables smart contracts, tokenized assets, and DeFi on the Litecoin network.
- Litecoin Foundation backs LitVM, marking a shift toward programmability and cross-chain use.
Litecoin has entered the Layer-2 development space with the launch of LitVM, a new zero-knowledge rollup chain aimed at expanding the nearly 14-year-old network’s functionality. The announcement was made during the Litecoin Summit in Las Vegas, signaling a major step toward supporting smart contracts, decentralized finance (DeFi), and cross-chain interoperability.
Developed by Lunar Digital Assets using BitcoinOS and Polygon CDK, LitVM brings smart contract capabilities to Litecoin for the first time. The chain is fully compatible with the Ethereum Virtual Machine (EVM), allowing developers to build decentralized applications (dApps) using native Litecoin assets.
According to the announcement, the integration also supports tokenized real-world assets (RWAs), stablecoin infrastructure, and cultural tokens such as Runes and Lordinals.
Edan Yago, the Head of Litecoin ZK Development, introduced the Layer-2 solution at the Summit. Yago described LitVM as “the first true ZK rollup” within the UTXO transaction model. Litecoin, which historically focused on speed and simplicity, will now support programmable features while maintaining its original security priorities.
Layer-2 Architecture and Interoperability Features
The layout of LitVM includes access to AggLayer’s cross-chain liquidity, enabling trustless bridging and time-locked tokenized asset support. According to Lunar Digital Assets CEO Roc Zacharias, this shift aligns Litecoin with the broader Layer-2 trend across leading blockchains. He pointed out that Bitcoin and Ethereum Layer-2 solutions currently hold more than $12 billion in total value locked (TVL).
Zacharias added that Litecoin continues to see widespread global usage and that LitVM is intended to provide infrastructure for token-based utility and liquidity in a composable manner. The new Layer-2 platform is designed to cater to the growing interest of developers in building on the Litecoin network using familiar smart contract tools.
The Litecoin Foundation has formally endorsed the LitVM initiative. In a statement, the organization noted that the launch responds to long-standing requests from the developer community for more programmable functionality.
Litecoin founder Charlie Lee assured that the network’s core values of security and reliability would remain unchanged. Lee stated that LitVM introduces a new phase for Litecoin, adding programmable capabilities while preserving foundational principles.
Related: Litecoin Retail Adoption and Network Growth Surge on ETF News
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