BitVault Raises $2 Million From GSR, Gemini and Auros To Release BTC-Backed Money
June 18, 2025– Berlin, Germany BitVault, a DeFi protocol intending to redefine Bitcoin’s role in stablecoin facilities, has announced the close of a $2 million pre-seed round. Strategic investors include GSR, Gemini, Auros and Keyrock, among others, joining BitVault in building the ‘next age of BTC-backed money’– an institutionally-aligned solution 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 serve as a core stablecoin protocol on Katana, a new DeFi-first chain bred by Polygon Labs and GSR focusing on deep liquidity and user benefits, leveraging a licensed fork of Liquity v2 to enable permissioned lending, user-set interest rates and automated liquidation infrastructure. Michael Kisselgof, core contributor of BitVault and VaultCraft, said, ‘Bitcoin was built for moments of fracture.’ Stablecoins at an inflection point BitVault arrives in the middle of rising demand for crypto-native stability in a fragmented global financial environment. Unlike fiat-backed stablecoins like USDC or algorithmic options 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 risks associated with overleveraged or anonymous borrowing. DeFi users can earn yield by staking bvUSD into sbvUSD, which leverages delta-neutral and arbitrage strategies managed by GSR– a globally recognized crypto investment firm specializing in market making– OTC trading and options. Alain Kunz, director for GSR, who participated in the round, said, ‘We’re seeing growing interest in BTC-backed stablecoins, especially those designed to integrate seamlessly into DeFi environments.’ BitVault contributes to Katana’s evolving community by introducing a new layer of stablecoin utility, enabling BTC to play a more efficient role within Katana’s high-yield DeFi stack.
