Bitcoin and Stablecoins steal the spotlights and one company hopes to tap both.
Bitcoin (BTC) and Stablecoin stories come together in the latest financing round. On Thursday, June 18, Bitvault made an investment of $ 2 million to build a Bitcoin-stundled Stablecoin. The BVUSD Stablecoin is launched on Katana, a new chain incubated by Polygon Labs and GSR.
GSR is also a strategic investor in the company, together with Gemini, Auros and Keyrock. The financing round came in the midst of increasing interest in Stablecoins, especially after the genius law had adopted the US Senate.
With the regulatory clarity introduced by the Genius ACT, large banks and technology companies are now launching their own Stablecoins. In contrast to assets supported by Fiat such as USDC, BVUSD is supported by Bitcoin reserves.
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Bitvault uses Bitcoin for Defi
Creating a Bitcoin-supported Stablecoin is partly aimed at unlocking BTC’s liquidity for the Defi-Ecosystem. Specifically, the Protocol will enable yield generation with Stuted -Bvusd, supported by crypto arbitration strategies.
“Bitcoin was built for moments of breakage. Bitvault was built to make it usable,” said Michael Kisselgof, core contribution of Bitvault and Vaultcraft. “We specifically have GSR, Auros and Keyrock as strategic investors on board board board that can also perform a high yield, non-directing strategies to create demand and deep liquidity for BTC-steaming money.”
According to GSR, an investor in Bitvault, the Stablecoin company offers considerable potential for the Katana ecosystem.
“We see the growing interest in BTC-supported Stablecoins, especially those designed to seamlessly integrate into defi-ecosystems,” said Alain Kunz, director of GSR. “Bitvault contributes to the evolving ecosystem of Katana by introducing a new layer of Stablecoin utility, allowing BTC to play a more productive role in Katana’s high-interest defici stack.”
Bitvault is a fork of Liquity V2, launched for institutional use in accordance with Lquity AG. The protocol has a permitted loan layer, combined with core Defi functions.
Read more: Why Stablecoin will bloom, then bust: Arthur Hayes