CoinInsight360.com logo CoinInsight360.com logo
America's Social Casino

crypto.news 2025-06-19 12:52:53

BitVault to launch BTC-backed stablecoin on Katana chain

Bitcoin and stablecoins are stealing the spotlight, and one company hopes to tap into both of them. Bitcoin (BTC) and stablecoin narratives converge in the latest funding round. On Thursday, June 18, BitVault secured a $2 million investment to build a Bitcoin-backed stablecoin. The bvUSD stablecoin will launch on Katana, a new chain incubated by Polygon Labs and GSR. GSR is also a strategic investor in the venture, along with Gemini, Auros, and Keyrock. The funding round came amid rising interest in stablecoins, especially after the Genius Act passed the U.S. Senate. With the regulatory clarity introduced by the Genius Act, major banks and tech firms are now considering launching their own stablecoins. However, unlike fiat-backed assets such as USDC, bvUSD will be backed by Bitcoin reserves. You might also like: Every bank will issue a stablecoin after GENIUS Act passage: Alchemy CTO BitVault leverages Bitcoin for DeFi The creation of a Bitcoin-backed stablecoin is aimed in part at unlocking BTC’s liquidity for the DeFi ecosystem. Specifically, the protocol will enable yield generation with staked bvUSD, supported by crypto arbitrage strategies. “Bitcoin was built for moments of fracture. BitVault was built to make it usable,” said Michael Kisselgof, Core Contributor of BitVault and VaultCraft. “We specifically onboarded GSR, Auros, and Keyrock as strategic investors that can also execute high yielding, non-directional strategies to create demand and deep liquidity for BTC-backed money.” According to GSR, an investor in BitVault, the stablecoin venture holds significant potential for the Katana ecosystem. “We’re seeing growing interest in BTC-backed stablecoins, especially those designed to integrate seamlessly into DeFi ecosystems,” said Alain Kunz, Director of GSR. “BitVault adds to Katana’s evolving ecosystem by introducing a new layer of stablecoin utility, enabling BTC to take on a more productive role within Katana’s high-yield DeFi stack.” BitVault is a fork of Liquity V2, launched for institutional use in agreement with Liquity AG. The protocol features a permissioned borrowing layer, combined with core DeFi features. Read more: Why stablecoin stocks will boom, then bust: Arthur Hayes

Read the Disclaimer : All content provided herein our website, hyperlinked sites, associated applications, forums, blogs, social media accounts and other platforms (“Site”) is for your general information only, procured from third party sources. We make no warranties of any kind in relation to our content, including but not limited to accuracy and updatedness. No part of the content that we provide constitutes financial advice, legal advice or any other form of advice meant for your specific reliance for any purpose. Any use or reliance on our content is solely at your own risk and discretion. You should conduct your own research, review, analyse and verify our content before relying on them. Trading is a highly risky activity that can lead to major losses, please therefore consult your financial advisor before making any decision. No content on our Site is meant to be a solicitation or offer.