Summary:
- BitVault, a DeFi protocol, has closed a $2 million pre-seed round with strategic investors.
- They are launching bvUSD, a stablecoin backed by Bitcoin derivatives, on Katana, a DeFi-first chain.
- BitVault aims to redefine Bitcoin’s role in stablecoin infrastructure and provide institutional-grade stablecoins.
Article:
BitVault, a groundbreaking DeFi protocol based in Berlin, Germany, recently announced the successful completion of a $2 million pre-seed funding round. The funding was secured from strategic investors such as GSR, Gemini, Auros, and Keyrock, who are all actively involved in building the "next era of BTC-backed money." This initiative aims to offer an alternative to traditional fiat-pegged stablecoins by introducing a stablecoin protocol that is institutionally aligned and backed by Bitcoin derivatives.
One of the key highlights of this funding round is the launch of bvUSD, BitVault’s overcollateralized stablecoin, and sbvUSD, a yield-bearing variant powered by institutional trading strategies provided by GSR. These stablecoins will play a vital role in the Katana ecosystem, a new DeFi-first chain incubated by Polygon Labs and GSR. Leveraging a licensed fork of Liquity V2, Katana prioritizes deep liquidity and user rewards, enabling permissioned borrowing, user-set interest rates, and automated liquidation infrastructure.
Michael Kisselgof, Core Contributor of BitVault and VaultCraft, expressed his vision for BitVault, stating, "Bitcoin was built for moments of fracture. BitVault was built to make it usable." The strategic partnership with investors like GSR, Auros, and Keyrock will not only create demand and liquidity for BTC-backed money but also facilitate high-yielding, non-directional strategies within the DeFi ecosystem.
BitVault’s entrance into the market comes at a crucial time when there is a growing demand for crypto-native stability in a fragmented global monetary environment. Unlike traditional stablecoins like USDC or algorithmic options such as Ethena’s USDe, bvUSD stands out by being collateralized by BTC derivatives. This unique approach ensures that only whitelisted institutional borrowers can mint bvUSD in bulk, while DeFi users can earn yield by staking bvUSD into sbvUSD, which employs delta-neutral and arbitrage strategies managed by GSR.
As BitVault prepares for its mainnet deployment on Katana in June 2025, the team is actively working on expanding its stablecoin suite to support additional BTC-based collateral assets and onboard more institutional borrowers. With a focus on capital efficiency, user-set interest rates, and enhanced liquidity mechanisms, BitVault is set to redefine Bitcoin’s role in the stablecoin infrastructure and provide a seamless integration into the DeFi ecosystem.
For media inquiries or partnership information, you can reach out to [email protected] or visit their website at bitvault.finance. Please note that this article is for informational purposes only and should not be considered as investment advice. It is always recommended to consult with a professional financial advisor before making any investment decisions in the cryptocurrency space.
