- Hermetica raises $1.7M to support the creation and expansion of the USDh stablecoin.
- USDh offers a Bitcoin-backed, yield-generating alternative to fiat conversions.
Hermetica, the developer of USDh, a Bitcoin-backed yield-bearing stablecoin, has acquired $1.7 million in seed funding to accelerate its development. The investment round, led by UTXO Management, seeks to accelerate USDh growth across Bitcoin’s layer one (L1) and layer two (L2) networks. This funding will help expand USDh’s presence and capabilities within the Bitcoin ecosystem. This funding will increase the stablecoin’s liquidity and expand its presence on decentralized exchanges (DEXs). It will also drive greater adoption within Bitcoin’s decentralized finance (DeFi) ecosystem.
USDh is crafted to offer Bitcoin users a stable, dollar-denominated asset that is backed by Bitcoin. This provides an effective alternative to converting cash, allowing for seamless transactions within the cryptocurrency ecosystem. This stablecoin is fully redeemable for Bitcoin (BTC), ensuring seamless integration within the Bitcoin ecosystem. By operating entirely within the decentralized network, USDh allows users to maintain their holdings while accessing stability. This approach enables them to profit without needing to exit the Bitcoin environment.
The stablecoin market has been slowly expanding, and Hermetica sees considerable untapped potential in the Bitcoin DeFi field. The startup anticipates a $1 trillion market and aims to capitalize on this opportunity by enhancing the liquidity of USDh. Additionally, it plans to expand USDh’s use case across multiple platforms to maximize its potential.
Expanding Bitcoin’s DeFi Potential
Hermetica aims to forge institutional partnerships, strengthening its position in the DeFi ecosystem. Their strategy also focuses on developing scalable settlement solutions to support widespread adoption. With these efforts, USDh positions itself to become a significant player in the decentralized finance space.
UTXO Management has partnered with several prominent investors in the project, including CMS Holdings, Ethos Fund, and Trust Machines SPV. These investors share a strong belief in USDh’s potential to revolutionize how Bitcoin users engage with stablecoins. By leveraging a secure and decentralized ecosystem, USDh aims to improve the user experience for stablecoin holders. This initiative also seeks to expand the use cases for stablecoins within the Bitcoin community, fostering greater adoption and utility.
Hermetica Labs’ CEO, Jakob Schillinger, described USDh as a capital-efficient, yield-generating stablecoin that is not tied to established currency systems. They believe stablecoins are essential for developing a decentralized financial system.They feel that stablecoins are vital for establishing a decentralized financial system. USDh is well positioned to benefit Bitcoin holders by providing both stability and yield while remaining within the Bitcoin ecosystem, he explained.
Hermetica’s focus on partnerships with institutions is intended to boost USDh’s utility, making it a viable option for both retail and institutional Bitcoin users. The company intends to continue improving the stablecoin’s liquidity, making it easier for users to incorporate USDh into their existing Bitcoin strategy without leaving the crypto world.
