Cryptocurrency Startup, BitVault, Secures $2 Million Funding from GSR, Gemini, and Auros for Bitcoin-Backed Currency Launch
Breaking News: GSR, Gemini, and Auros Inject $2M into DeFi Protocol BitVault
Hey there! Here's the scoop on a fresh DeFi project that's looking to transform Bitcoin's role in stablecoin infrastructure. BitVault has justbagged $2 million in a pre-seed round from strategic investors like GSR, Gemini, Auros, and Keyrock.
The funding will power the launch of bvUSD, BitVault’s over-collateralized stablecoin backed by Bitcoin derivatives, and sbvUSD, its yield-bearing variant bolstered by trading strategies managed by GSR.
BitVault is set to serve as the core stablecoin protocol on Katana, a DeFi-first chain incubated by Polygon Labs and GSR, prioritizing deep liquidity and user rewards. The incubation leverages a licensed fork of Liquity v2, enabling permissioned borrowing, user-set interest rates, and automated liquidation infrastructure.
Michael Kisselgof, a core contributor of BitVault and VaultCraft, shared his excitement, saying, "Bitcoin was built for moments of fracture. BitVault was built to make it usable." He further added, "Our strategic investors can also execute high yielding, non-directional strategies to create demand and deep liquidity for BTC-backed money."
DeFi Incentivized: The New Global Stability
The timing for BitVault couldn't be better, as there's a growing need for crypto-native stability in our fragmented monetary landscape. Unlike traditional fiat-backed stablecoins like USDC or algorithmic options like Ethena's USDe, bvUSD is collateralized by BTC derivatives, offering a unique solution to the global stability conundrum.
The project’s approach eliminates associated risks with over-leveraged or anonymous borrowing, by only letting whitelisted institutional borrowers mint bvUSD in bulk. Retail users can mint bvUSD using stablecoins, further promoting safety and reducing systemic risk. Additionally, DeFi enthusiasts can earn yields by staking bvUSD into sbvUSD, fostering an exciting DeFi opportunity!
Growing Interest in BTC-Backed Stablecoins
With the success of BitVault’s innovative approach, GSR's director, Alain Kunz, highlights the growing demand for BTC-backed stablecoins, especially those designed to blend seamlessly into DeFi ecosystems. Kunz believes that BitVault's deployment on Katana will introduce a new layer of stablecoin utility, enhancing Bitcoin's role within Katana's high-yield DeFi stack.
It's a bullish time for DeFi and Bitcoin-backed stablecoins, so keep your eyes peeled for more updates on this game-changing project! If you're a DeFi fan, make sure to check out BitVault's progress and stay updated by following their official channels. Happy DeFi adventuring! 🤘🏻🔥🚀
💡 Fun Fact: Current market stats put the value of Bitcoin at $104,860.09, Ethereum at $2,525.22, and other Altcoins under the spotlight! (Prices as of June 18, 2025)
- The funding for BitVault, a DeFi project, will be used to launch bvUSD, a stablecoin backed by Bitcoin derivatives, and also to develop sbvUSD, a yield-bearing variant of the stablecoin, where strategies will be managed by GSR, a strategic investor.
- BitVault's approach to stablecoins, which eliminates associated risks with over-leveraged or anonymous borrowing, while collateralizing the stablecoin with BTC derivatives, is part of an increasing interest in Bitcoin-backed stablecoins, especially those designed to blend seamlessly into DeFi ecosystems.
- As a DeFi fan, it's essential to keep up with the progress of innovative projects like BitVault, which aim to transform Bitcoin's role in stablecoin infrastructure, and provide unique solutions to the global stability conundrum through their cryptocurrency investments in blockchain-based finance.
