• BitVault raised $2 million in a pre-seed round from investors including GSR, Gemini, and Auros.
  • The protocol will launch bvUSD, a BTC-derivatives-backed stablecoin, and sbvUSD, a yield-bearing version, on Katana, a DeFi chain incubated by Polygon Labs and GSR.

BitVault, a DeFi protocol aiming to transform Bitcoin’s role in stablecoin infrastructure, has closed a $2 million pre-seed funding round.

Strategic investors, including GSR, Gemini, Auros, and Keyrock, have joined BitVault in building what it calls the “next era of BTC-backed money,” offering an institutional alternative to fiat-pegged stablecoins.

The funding will support the launch of bvUSD, an overcollateralized stablecoin backed by Bitcoin derivatives, and sbvUSD, a yield-bearing version powered by institutional trading strategies managed by GSR.

Unlike fiat-backed stablecoins such as USDC, bvUSD is collateralised by BTC derivatives.

Institutional borrowers on a whitelist can mint bvUSD in bulk, while anyone can mint using stablecoins, mitigating risks linked to overleveraged or anonymous borrowing.

Built on Katana with Licensed Liquity Tech

BitVault will operate on Katana, a new DeFi-first chain incubated by Polygon Labs and GSR that prioritises deep liquidity and user rewards.

The protocol leverages a licensed fork of Liquity V2, enabling permissioned borrowing, user-set interest rates, and automated liquidation mechanisms.

“Bitcoin was built for moments of fracture. BitVault was built to make it usable,”said Michael Kisselgof, Core Contributor of BitVault and VaultCraft.

The protocol benefits from strategic investors like GSR, Auros, and Keyrock, who provide high-yield, non-directional strategies to foster liquidity for BTC-backed money.

BitVault’s mainnet deployment on Katana is scheduled for June 2025. The team plans to expand its stablecoin offerings with more BTC-based collateral assets and is actively onboarding institutional borrowers.

The upcoming VCRAFT token will govern the protocol’s future parameters and reward liquidity and stability providers.

Edited by Annette George