Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesCopyBotsEarn
Hermetica Raises $1.7M to Boost Bitcoin-Backed Stablecoin USDh Expansion

Hermetica Raises $1.7M to Boost Bitcoin-Backed Stablecoin USDh Expansion

EthnewsEthnews2024/10/16 21:27
By:By Isai Alexei
  • USDh offers Bitcoin holders a stable, dollar-pegged asset without converting to fiat, fostering ecosystem growth.
  • The stablecoin operates on Bitcoin Layer 1 and Layer 2 networks, enabling faster, cost-effective transactions securely.

Hermetica has raised $1.7 million in seed funding to accelerate the development of its Bitcoin-backed stablecoin, USDh. This stablecoin is pegged to the U.S. dollar and designed to function within the Bitcoin ecosystem, allowing users to hold digital assets without converting to fiat currency. USDh is redeemable at a 1:1 ratio for Bitcoin, making it a reliable option for users who prefer to remain in the cryptocurrency space while managing dollar-denominated holdings.

The seed funding round was led by UTXO Management and saw contributions from investors such as CMS Holdings, Ethos Fund, and Trust Machines SPV. This capital infusion is intended to boost the adoption of USDh, which is currently available on both Bitcoin Layer 1 and Layer 2 networks. These layers enable faster and more cost-effective transactions while maintaining security.

Hermetica’s launch of USDh on the Stacks Layer 2 network in recent months has opened up opportunities for users to earn up to 25% in yield. The stablecoin aims to tap into an estimated $1 trillion in Bitcoin value that remains underutilized in decentralized finance (DeFi). By providing a stable, Bitcoin-backed asset , USDh allows users to securely hold dollars without leaving the Bitcoin ecosystem.

With the global stablecoin market surpassing $160 billion, USDh is positioned to gain market share by offering a decentralized and secure alternative to traditional fiat-backed stablecoins . Only 1% of Bitcoin’s $1.3 trillion market cap is currently used in DeFi applications, leaving room for further growth.

The funds raised will enhance USDh’s liquidity, improve institutional partnerships, and support off-exchange settlement solutions. Hermetica is focused on integrating USDh into the Bitcoin ecosystem to offer a practical and stable dollar alternative for cryptocurrency users.

Hermetica’s leadership emphasized the importance of stablecoins in decentralizing the financial system. USDh is viewed as an efficient tool that allows Bitcoin users to manage stable assets, ensuring it plays a key role in the broader adoption of decentralized finance.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Locked for new tokens.
APR up to 10%. Always on, always get airdrop.
Lock now!