Hermetica secures $1.7M for stablecoin growth in seed funding

Hermetica has raised $1.7 million in seed funding to support the growth of its Bitcoin-backed (CRYPTO:BTC) stablecoin, USDh (CRYPTO:USDH). 

The funding round, led by UTXO Management, included participation from investors such as CMS Holdings, Ethos Fund, and Trust Machines SPV. 

This investment aims to enhance the adoption of USDh by increasing liquidity, forming institutional partnerships, and improving off-exchange settlement solutions. 

USDh is designed to be a stable, dollar-pegged asset for Bitcoin holders, enabling users to manage dollar-denominated holdings without converting to fiat currency. 

It is redeemable at a 1:1 ratio with Bitcoin, offering a reliable option for users who wish to remain within the cryptocurrency ecosystem. 

Operating on both Bitcoin Layer 1 and Layer 2 networks, USDh facilitates faster and more cost-effective transactions while maintaining security. 

The launch of USDh on the Stacks Layer 2 network has allowed users to earn up to 25% yield, tapping into the estimated $1 trillion in Bitcoin value that remains underutilised in decentralised finance (DeFi). 

With the global stablecoin market exceeding $160 billion, USDh aims to expand its market share by providing a decentralised, secure alternative to traditional fiat-backed stablecoins. 

Currently, only a small percentage of Bitcoin's $1.3 trillion market cap is used in DeFi applications, highlighting significant growth potential for assets like USDh. 

According to Hermetica’s leadership, the stablecoin's integration into the Bitcoin ecosystem will offer a practical and stable dollar alternative, promoting the broader adoption of decentralised finance.

At the time of writing, the USDH price was $0.9988.