Exclusive: Lite Strategy leads $1m investment in Litecoin Layer 2 platform LitVM By Investing.com

Investing.com — , the first U.S. public company to hold Litecoin as its primary treasury reserve asset, will announce Thursday that it has closed a $1 million lead strategic investment in ZK Innovations Inc, Investing.com has learned.

ZK Innovations is the developer of LitVM, the first zero-knowledge Layer 2 platform built on Litecoin.

The deal positions Nasdaq-listed Lite Strategy as a key institutional partner in LitVM’s development as the platform prepares to launch its mainnet infrastructure.

In addition to the capital, Lite Strategy has received governance participation rights and the opportunity to acquire a portion of LitVM’s future network tokens, directly aligning the company with the platform’s long-term trajectory.

LitVM is designed to bring programmability to Litecoin for the first time, introducing smart contract functionality, decentralized finance applications, tokenized real-world assets, and EVM compatibility to a network that has historically been limited to payments.

The platform uses ZK-rollup technology to bundle transactions into single zero-knowledge proofs, enabling high throughput and low fees while preserving Litecoin’s base layer security. A trustless bridging mechanism allows holders to move native assets to the Layer 2 without relying on custodial bridges.

Jay File, CEO and CFO of Lite Strategy, said the company’s strategy extends beyond simply holding Litecoin. “LitVM brings programmability and new use cases to Litecoin for the first time, marking an important step in the network’s evolution,” he said.

Charlie Lee, Litecoin’s creator and a Lite Strategy board member, believes that adding a programmable layer opens the door to new applications while preserving the security and decentralization that underpin the network’s value.

Lite Strategy currently holds approximately 850,000 LTC, representing roughly 1.1% of total mined supply. The company views expanding Litecoin’s utility through infrastructure investments as a means of directly enhancing the productivity and potential value of its core treasury asset.

LitVM co-founder Aztec Amaya said Lite Strategy’s institutional credibility and ecosystem expertise would be central to scaling the platform into a leading Web3 infrastructure layer for Litecoin.