PANAMA CITY, FL – 19/10/2024 – (SeaPRwire) – In a major step toward redefining the stablecoin landscape and Bitcoin’s utility within the DeFi ecosystem, Hermetica, the innovative company behind the Bitcoin-backed stablecoin USDh, has successfully raised $1.7 million in seed funding. This achievement marks a critical moment in the expansion of USDh, a pioneering stablecoin designed to be fully backed by Bitcoin, offering yield-bearing capabilities to users while maintaining stability and liquidity.
The funding round, led by UTXO Management, attracted support from some of the most prominent investors in the cryptocurrency and decentralized finance space. This diverse group of backers includes CMS Holdings, Ethos Fund, Trust Machines SPV, Kilowatt Capital, Newman Capital, and Silvermine, along with several strategic angel investors such as Tycho Onnasch (Founder & CEO, Zest Protocol), Robin Obermaier (Founder & CEO, Liquidium), Mithil Thakore (Founder & CEO, Velar), Matt Maduno (Founder & CEO, Arch Network), and GM Chung (Founder, DeSpread). These backers have come together to support Hermetica in its mission to offer a robust and decentralized financial infrastructure that empowers Bitcoin users and strengthens the adoption of Bitcoin within DeFi.
Revolutionizing Stablecoins with Bitcoin Backing and Yield-Bearing Capabilities
USDh stands out as the first Bitcoin-backed stablecoin designed not only to provide stability for users but also to generate yield, making it a compelling alternative to traditional fiat-backed stablecoins. As the global market for stablecoins continues to grow exponentially, now valued at over $160 billion and accounting for nearly 50% of all on-chain transactions, USDh is uniquely positioned to capture a significant share of this booming sector. Its issuance on both Bitcoin’s Layer 1 (via Runes) and Layer 2 (via the Stacks network) provides a secure and scalable solution for users looking to hold and transact with a dollar-denominated asset fully backed by Bitcoin.
Despite Bitcoin’s staggering market cap of $1.3 trillion, only a small fraction—around 1%—of its value is currently locked in decentralized finance protocols. Hermetica sees this as a massive opportunity, with a $1 trillion untapped market that USDh is poised to unlock. The ability to hold 1 USDh as equivalent to 1 USD worth of Bitcoin provides Bitcoin holders and DeFi participants with a reliable and liquid asset without the need to exit the Bitcoin ecosystem or convert into traditional fiat currencies.
In light of this potential, Hermetica CEO Jakob Schillinger emphasized the importance of stablecoins within the broader decentralized finance landscape. “Stablecoins are a cornerstone of decentralized financial systems, and USDh offers a unique proposition as a Bitcoin-backed stablecoin that is capital efficient, independent of the fiat system, and capable of generating yield. We believe USDh will play a critical role in the continued expansion of Bitcoin’s utility and adoption across decentralized finance.”
Key Investors Express Optimism About USDh’s Role in the Future of DeFi
Several key investors voiced their enthusiasm for USDh and its potential to transform the Bitcoin ecosystem by introducing a yield-bearing stablecoin. Tyler Evans, Managing Partner of UTXO Management, which led the funding round, highlighted the strategic importance of Hermetica’s innovation in stablecoins. “USDh represents a breakthrough for Bitcoin-backed stablecoins. Hermetica’s approach to delta-hedging positions USDh as a key player in the evolving stablecoin landscape. We’re thrilled to support Hermetica as they pioneer this groundbreaking financial tool.”
Similarly, Simon Shin, Managing Partner at Ethos Fund, noted, “Hermetica is unlocking significant value within the Bitcoin ecosystem by seamlessly integrating stablecoins into Bitcoin’s Layer 1 and Layer 2 networks. This is a massive opportunity, and we see USDh becoming a fundamental tool for Bitcoin users who want to hold a reliable dollar-denominated asset without leaving the ecosystem.”
The strategic partnerships with such prominent backers underscore the confidence that key stakeholders have in Hermetica’s ability to reshape the future of decentralized finance by maximizing Bitcoin’s untapped potential.
How USDh Works: A Bitcoin-Backed, Yield-Bearing Stablecoin
USDh offers Bitcoin users a highly versatile stablecoin that combines the best of both worlds: stability and yield generation. Users can redeem 1 USDh for 1 USD worth of Bitcoin, providing a stable dollar-pegged asset that remains securely backed by Bitcoin. This structure offers significant advantages for Bitcoin holders, enabling them to maintain exposure to Bitcoin while mitigating the volatility typically associated with cryptocurrencies.
Issued natively on Bitcoin’s Layer 1 through Runes, as well as on Layer 2 via the Stacks network, USDh can be easily acquired on decentralized exchanges, offering users flexible access to the stablecoin. Moreover, USDh’s yield-bearing nature means that users can generate passive income while holding the asset, a feature that distinguishes USDh from other stablecoins that do not offer interest-earning capabilities.
By utilizing Bitcoin’s strong security and transparency, Hermetica is setting the stage for a new class of decentralized financial products that are reliable, efficient, and tailored for the needs of Bitcoin market participants. USDh provides a seamless experience for users looking to transact within the Bitcoin ecosystem without converting into fiat, offering a more secure alternative to traditional stablecoins that are tied to the fluctuating value of fiat currencies.
Looking Forward: Building Out the USDh Ecosystem
With the capital raised from this seed funding round, Hermetica plans to accelerate the development of the USDh ecosystem, focusing on three main areas: liquidity enhancement, institutional-grade custodial partnerships, and scalable off-exchange settlement solutions. These initiatives are designed to ensure that USDh is accessible to a broad range of users, from retail investors to large institutions, and that the stablecoin’s infrastructure is secure and scalable enough to meet the growing demands of the market.
Hermetica also plans to continue building on Bitcoin’s foundational strengths, leveraging its unmatched security and decentralized nature to offer a compelling alternative to fiat-backed stablecoins. The company’s goal is to create a decentralized financial infrastructure that allows users to hold, transact, and generate yield without ever having to leave the Bitcoin network. This vision aligns with the growing demand for decentralized solutions in a financial world that is increasingly looking beyond traditional banking systems.
About Hermetica
Founded by a team of crypto-native experts with deep roots in financial technology, Hermetica brings together experience from major financial institutions such as Kraken and State Street. The company’s mission is to create innovative financial products that leverage the security and transparency of Bitcoin, providing users with reliable, decentralized alternatives to traditional financial systems.
SOURCE: Hermetica Labs, Inc.
by Arrow123
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