Hermetica, the corporate behind the Bitcoin-backed stablecoin USDh, has raised $1.7 million in seed funding.
The funding will assist the expansion of USDh, a stablecoin designed to be backed by Bitcoin (BTC). A stablecoin is a kind of cryptocurrency that goals to maintain its worth tied to a steady asset, just like the U.S. greenback, as a substitute of fluctuating like Bitcoin.
USDh permits Bitcoin holders to transact with a digital asset pegged to the worth of the U.S. greenback with out leaving the Bitcoin ecosystem. For instance, 1 USDh equals 1 USD price of Bitcoin.
In keeping with an organization press launch, UTXO Administration led the funding spherical, which included a number of main traders reminiscent of CMS Holdings, Ethos Fund, and Belief Machines SPV. Strategic backers like Tycho Onnasch of Zest Protocol and Robin Obermaier of Liquidium additionally contributed.
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What’s USDh?
USDh is issued on Bitcoin’s primary blockchain, Layer 1, and on Layer 2 networks, permitting sooner and cheaper transactions. The stablecoin is on the market for buy on decentralized exchanges
Final month, Hermetica launched USDh on the Stacks Layer 2 community. The transfer supplied customers the potential to earn yields of as much as 25%.
Because the stablecoin market grows, USDh targets a share of the estimated $1 trillion in untapped Bitcoin worth that may very well be unlocked in DeFi. Its aim is to allow Bitcoin market members to securely maintain {dollars} with out exiting the Bitcoin ecosystem or changing to fiat.
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