Hermetica, the creator of USDh, a Bitcoin-backed synthetic dollar, has successfully closed a $1.7 million seed funding round led by UTXO Management. Investors such as CMS Holdings, Ethos Fund, and Trust Machines, along with several others, also participated in the funding. These funds will drive the expansion of USDh, which is designed to allow Bitcoin users to transact with a stable dollar without leaving the Bitcoin ecosystem.
Key Investors Supporting the USDh Vision
The seed round attracted notable investors, including Newman Capital, Silvermine, and influential figures like Tycho Onnasch from Zest Protocol and Robin Obermaier from Liquidium. These backers have shown strong confidence in Hermetica’s mission to revolutionize Bitcoin-backed stablecoins.
USDh is natively issued on Bitcoin Layer 1 through Runes and Layer 2 via the Stacks network, making it accessible for purchase on decentralized exchanges. With the global stablecoin market exceeding $160 billion and growing year-over-year, Hermetica is poised to tap into a vast market. Currently, only 1% of Bitcoin’s $1.3 trillion value is locked in DeFi.
Jakob Schillinger, CEO of Hermetica Labs, stated, “We believe stablecoins are a foundational building block for a decentralized financial system.” He highlighted that USDh is capital efficient, independent of fiat systems, and yield-generating. Tyler Evans, Managing Partner at UTXO Management, remarked that USDh represents a breakthrough in the stablecoin landscape. Simon Shin from Ethos Fund emphasized Hermetica’s potential to unlock significant value within the Bitcoin ecosystem through USDh.
Hermetica Integrating Bitcoin with Stable Dollar Assets
The capital will enhance USDh’s liquidity and develop custodial partnerships and off-exchange settlement solutions. By leveraging Bitcoin’s security, Hermetica aims to offer an efficient alternative to traditional fiat-backed stablecoins, allowing Bitcoin users to hold stable dollar assets without exiting the ecosystem.
Source: https://blockchainreporter.net/hermetica-raises-1-7m-in-seed-funding-to-accelerate-usdh-stablecoin-expansion/