Satoshi Protocol, a stablecoin protocol backed by Bitcoin (BTC), has successfully raised $2 million in its seed funding round led by CMS Holdings and RockTree Capital.

The protocol enables Bitcoin holders to use their coins as collateral to mint the native SAT stablecoin. The newly secured funds will be used to enhance network security and expand integration across Layer-2 solutions, aiming for further traction within the ecosystem.

Satoshi Protocol currently integrates with several Bitcoin protocols, including Bitlayer, BEVM, Omni Network, and Core Chain. The protocol recently collaborated with Binance’s Web3 Wallet Campaign, reaching over 172,000 users.

Satoshi Protocol’s Stablecoin Integration

In a statement, Satoshi Protocol co-founder and CEO Naka said that the funding round is a significant boost for the protocol. Among other benefits, it is a step towards creating “a universal stablecoin that meets the needs of Bitcoin users.”

According to Naka, the capital injection will allow the protocol to reach its market and development goals.

On the Satoshi Protocol, users can mint SAT stablecoins with BTC and liquid staking tokens (LST) as collateral. This minting is accessible both on the Bitcoin mainnet and L2 networks within the ecosystem, a factor that has positioned Satoshi Protocol as a leader in bringing stablecoin utility to Bitcoin.

“Satoshi Protocol’s approach to integrating stablecoins is a real leap forward within the Bitcoin ecosystem,”

stated Vineet Budki, managing partner at Cypher Capital. Budki added that the investment reflects the VC platform’s confidence in Satoshi Protocol, noting that the L2 has boosted liquidity options for BTC holders.

In addition to CMS Holdings and RockTree Capital, the seed round attracted the participation of Metalpha, Optic Capital, Side Door Ventures, and Outliers Fund. The funding also received backing from notable angel investors.

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