BitVault has raised $2 million to create the bvUSD stablecoin, which will be backed by Bitcoin. The launch comes amid growing interest in stablecoins following the passage of the Genius Act.
Funding and Launch of bvUSD
On June 18, BitVault announced it secured $2 million in investments to develop the bvUSD stablecoin, set to launch on the Katana platform, a new chain incubated by Polygon Labs and GSR. Key investors in this round include GSR, Gemini, Auros, and Keyrock.
BitVault's Role in DeFi
The creation of a Bitcoin-backed stablecoin aims to unlock BTC liquidity for the DeFi ecosystem. The protocol will enable yield generation with staked bvUSD, supported by crypto arbitrage strategies. Michael Kisselgof, Core Contributor of BitVault, stated, "Bitcoin was built for moments of fracture. BitVault was built to make it usable."
Potential of Katana and BitVault
According to GSR, the stablecoin initiative holds significant potential for the Katana ecosystem. Alain Kunz, Director of GSR, noted, "We’re seeing growing interest in BTC-backed stablecoins, especially those designed to integrate seamlessly into DeFi ecosystems."
The launch of bvUSD represents a significant step toward integrating Bitcoin into the DeFi space, offering a means for more productive uses of BTC and increasing asset diversity within the Katana ecosystem.
