Hermetica, the company behind the Bitcoin-backed stablecoin USDh, has raised $1.7 million in seed funding.
The money will help USDh—a stablecoin intended to be backed by Bitcoin—grow. Rather than fluctuating in value like Bitcoin, a stablecoin seeks to maintain its value pegged to a stable asset, such as the US dollar.
Without leaving the Bitcoin ecosystem, USDh enables holders of Bitcoin to transact with a digital asset based on the value of the US dollar. For instance, one USDh is equivalent to one USD in Bitcoin.
A press statement from the company stated that UTXO Management spearheaded the investment round, which featured several significant backers like CMS Holdings, Ethos Fund, and Trust Machines SPV.
Liquidium’s Robin Obermaier and Zest Protocol’s Tycho Onnasch also made strategic contributions.
What is USDh?
USDh is released on Layer 1 and Layer 2 networks, enabling quicker and less expensive transactions and on the primary blockchain of Bitcoin.
On decentralized exchanges, one can purchase the stablecoin. Hermetica introduced USDh on the Stacks Layer 2 network last month.
With this change, consumers could earn returns as high as 25%. USDh aims to take a portion of the projected $1 trillion in unrealized Bitcoin value that could be unlocked in DeFi as the stablecoin market expands.
Its objective is to allow users of the Bitcoin market to safely retain dollars without having to leave the network or exchange them for fiat money.
