🌎 Hermetica Secures $1.7M to Expand Bitcoin-Backed Stablecoin USDh

Hermetica, the company behind the Bitcoin-backed stablecoin USDh, has successfully raised $1.7 million in seed funding.

Funding to Boost USDh Growth

The recent funding will be used to enhance the growth of USDh, a stablecoin backed by Bitcoin. Stablecoins are a type of cryptocurrency designed to maintain a stable value by being tied to assets like the U.S. dollar. This contrasts with the fluctuating nature of Bitcoin.

How USDh Works

USDh enables Bitcoin holders to transact using a digital asset pegged to the U.S. dollar’s value, all while staying within the Bitcoin ecosystem. For instance, 1 USDh is equivalent to 1 USD worth of Bitcoin.

Key Investors and Strategic Backers

The funding round was led by UTXO Management and featured significant investments from CMS Holdings, Ethos Fund, and Trust Machines SPV. Strategic backers included Tycho Onnasch of Zest Protocol and Robin Obermaier of Liquidium.

Technical Aspects and Market Potential

USDh is issued on Bitcoin’s main blockchain (Layer 1) and Layer 2 networks, which allow for faster and more cost-effective transactions. The stablecoin is available for purchase on decentralized exchanges.

Last month, Hermetica launched USDh on the Stacks Layer 2 network, offering users the potential to earn yields of up to 25%.

Targeting the Growing Stablecoin Market

As the stablecoin market expands, USDh aims to capture a portion of the estimated $1 trillion in untapped Bitcoin value that could be unlocked in DeFi (Decentralized Finance). The goal is to enable Bitcoin market participants to securely hold dollars without exiting the Bitcoin ecosystem or converting to fiat currency.

Future Prospects

The successful funding round and strategic partnerships position USDh well for growth in the evolving cryptocurrency landscape. With its unique offering, USDh is set to provide significant value to both Bitcoin holders and the broader financial ecosystem.