Hermetica, the company behind the Bitcoin-backed stablecoin USDh, has raised $1.7 million in seed funding. This funding will support the growth and development of USDh, designed to maintain value stability through Bitcoin backing.

Introduction to USDh

USDh is a stablecoin issued on the Bitcoin network, intended to keep its value tied to a stable asset like the U.S. dollar. It allows Bitcoin holders to transact in a dollar-pegged digital asset without leaving the Bitcoin ecosystem. 1 USDh equals 1 USD worth of Bitcoin.

Funding and Development Outlook

The Hermetica funding round was led by UTXO Management and included significant investors such as CMS Holdings, Ethos Fund, and Trust Machines SPV. Strategic backers like Tycho Onnasch of Zest Protocol and Robin Obermaier of Liquidium also contributed. This funding will facilitate the further development of USDh and its capabilities.

Market Strategy

USDh is available for purchase on decentralized exchanges and continues to expand its market presence. Last month, Hermetica launched USDh on the Stacks Layer 2 network, offering users potential yields of up to 25%. As the stablecoin market grows, USDh targets a share of the estimated $1 trillion in untapped Bitcoin value that could be unlocked in DeFi.

With significant investment backing, Hermetica aims to solidify its position in the stablecoin market, offering users the ability to hold a stable digital asset within the Bitcoin ecosystem.