BitVault Raises $2M from GSR, Gemini, and Auros to Release BTC-Backed Money
Tactical financiers consist of GSR, Gemini, Auros, and Keyrock, among others– joining BitVault in constructing what it calls the ‘next era of BTC-backed cash’: an institutionally-aligned option to fiat-pegged stablecoins. The raise supports the launch of bvUSD, BitVault’s overcollateralized stablecoin backed by Bitcoin derivatives, and sbvUSD, its yield-bearing variant powered by institutional trading techniques by GSR. BitVault will serve as a core stablecoin protocol on Katana, a brand-new DeFi-first chain incubated by Polygon Labs and GSR focusing on deep liquidity and user rewards, leveraging a certified fork of Liquity V2 to enable permissioned borrowing, user-set interest rates, and automated liquidation facilities. Unlike fiat-backed stablecoins like USDC or algorithmic choices like Ethena’s USDe, bvUSD is collateralized by BTC derivatives. Only whitelisted institutional borrowers can mint bvUSD in bulk, while anyone can mint bvUSD using stablecoins– mitigating dangers associated with overleveraged or confidential borrowing. The group plans to expand its stablecoin suite to support additional BTC-based collateral possessions and is actively onboarding institutional borrowers.
About BitVaultBitVault is a DeFi protocol that uses a crypto-native option for money through its BTC-backed stablecoin, bvUSD, and a yield-bearing staked stablecoin, sbvUSD.
BitVault, a DeFi procedure aiming to redefine Bitcoin’s function in stablecoin facilities, has actually announced the close of a $2 million pre-seed round. Tactical investors consist of GSR, Gemini, Auros, and Keyrock, among others– joining BitVault in constructing what it calls the ‘next age of BTC-backed cash’: an institutionally-aligned alternative to fiat-pegged stablecoins. The raise supports the launch of bvUSD, BitVault’s overcollateralized stablecoin backed by Bitcoin derivatives, and sbvUSD, its yield-bearing variant powered by institutional trading methods by GSR. BitVault will function as a core stablecoin procedure on Katana, a brand-new DeFi-first chain bred by Polygon Labs and GSR prioritizing deep liquidity and user rewards, leveraging a certified fork of Liquity V2 to allow permissioned loaning, user-set interest rates, and automated liquidation facilities. ‘Bitcoin was developed for minutes of fracture. BitVault was constructed to make it functional,’ said Michael Kisselgof, Core Contributor of BitVault and VaultCraft. ‘We particularly onboarded GSR, Auros, and Keyrock as strategic financiers that can likewise execute high yielding, non-directional strategies to produce demand and deep liquidity for BTC-backed money.’ Stablecoins at an Inflection PointBitVault gets here amid increasing need for crypto-native stability in a fragmented international monetary environment. Unlike fiat-backed stablecoins like USDC or algorithmic choices like Ethena’s USDe, bvUSD is collateralized by BTC derivatives. Only whitelisted institutional debtors can mint bvUSD wholesale, while anyone can mint bvUSD utilizing stablecoins– mitigating threats related to overleveraged or anonymous borrowing. DeFi users can earn yield by staking bvUSD into sbvUSD, which leverages delta-neutral and arbitrage methods managed by GSR, a globally recognized crypto financial investment company specializing in market making, OTC trading, and choices. ‘We’re seeing growing interest in BTC-backed stablecoins, specifically those designed to incorporate seamlessly into DeFi environments,’ said Alain Kunz, Director from GSR, who participated in the round. ‘BitVault’s method with experience in institutional-grade yield strategies places it well for success. We’re particularly excited about its implementation on Katana, a DeFi centric chain we helped breed. BitVault contributes to Katana’s evolving environment by introducing a new layer of stablecoin energy, enabling BTC to take on a more productive role within Katana’s high-yield DeFi stack.’ From Liquity to KatanaBitVault is a friendly fork of Liquity V2, re-engineered for institutional usage under a licensed implementation agreement with Liquity AG. The protocol blends automated, governance-free systems with a permissioned loaning layer, providing stability while maintaining core DeFi primitives like direct redemption and composable yield strategies. Its upcoming VCRAFT token will govern future protocol parameters and serve as a rewards mechanism for stability providers and liquidity contributors. The launch on Katana, bred by Polygon Labs and GSR, places BitVault at the heart of an emerging liquidity and settlement network across the EVM chain. Initial integrations include Vault infrastructure, Morpho cash markets, Sushi AMMs, and a multichain ‘Bits’ points project connected to VCRAFT distribution. What’s NextBitVault is scheduled for mainnet deployment on Katana in June 2025, with wider integrations across DeFi ecosystems and centralized liquidity venues in the works. The group plans to expand its stablecoin suite to support additional BTC-based collateral assets and is actively onboarding institutional borrowers. About BitVaultBitVault is a DeFi protocol that offers a crypto-native solution for money through its BTC-backed stablecoin, bvUSD, and a yield-bearing staked stablecoin, sbvUSD.
