news 
BitVault Secures $2 Million in Funding to Revolutionize Bitcoin-Backed Currency
Berlin, Germany – In a major development, BitVault has successfully raised $2 million in funding from prominent investors such as GSR, Gemini, and Auros. This significant investment will enable the company to launch its innovative BTC-backed money solution, promising to redefine the role of Bitcoin within the stablecoin infrastructure.
According to reports, BitVault’s pre-seed round garnered participation from several esteemed investors, including GSR, Gemini, Auros, and other strategic partners. The impressive funding will fuel the development and release of two critical components: bvUSD, a collateralized stablecoin backed by Bitcoin derivatives, and sbvUSD, its yield-bearing counterpart.
What sets BitVault apart is its institutionally aligned approach to stablecoins. Unlike traditional fiat-backed solutions like USDC or algorithmic options such as Ethena’s USDe, this new solution leverages the power of Bitcoin derivatives for collateralization. This unique architecture ensures that only whitelisted institutional borrowers can mint bvUSD in bulk, thereby mitigating risks associated with overleveraged or anonymous borrowing.
Moreover, BitVault is poised to play a crucial role within Katana, a DeFi-first chain incubated by Polygon Labs and GSR. The company has already begun integrating its infrastructure with that of Vault, Morpho money markets, Sushi AMMs, and a multichain “Bits” points campaign linked to VCRAFT distribution.
The team at BitVault is committed to expanding their stablecoin suite to support additional BTC-based collateral assets and actively onboarding institutional borrowers. The imminent mainnet deployment on Katana in June 2025 marks the beginning of an exciting new chapter for the project.
With this significant investment, BitVault aims to create a decentralized platform where users can earn yield by staking bvUSD into sbvUSD, which, in turn, utilizes delta-neutral and arbitrage strategies managed by GSR.
Source: cryptopotato.com
