BitVault has completed a $2 million pre-seed funding round aimed at creating a new stablecoin backed by Bitcoin. The investment will assist in launching various supported tools on the Katana platform.
Funding Goals and New Stablecoins
BitVault will focus on launching bvUSD, its over-collateralized stablecoin backed by Bitcoin derivatives, and sbvUSD, a yield-bearing variant powered by institutional trading strategies. Strategic investors include GSR, Gemini, Auros, and Keyrock.
Stablecoin Market and Competitive Advantages
With the increasing demand for crypto-native stability, BitVault offers an alternative to traditional stablecoins like USDC, providing unique advantages through Bitcoin backing. The use of Bitcoin derivatives minimizes risks associated with over-leveraged or anonymous borrowing.
Features and Future Integration Plans
BitVault incorporates automated governance-free mechanisms allowing a permissioned borrowing layer and user-set interest rates. The protocol has plans for deployment on main networks, including integration with other DeFi ecosystems and liquidity centralization.
With its new stablecoin model, BitVault answers current challenges in financial stability and cryptocurrency technologies, opening new horizons for BTC in the DeFi market.
