Catenaa, Thursday, June 26, 2025-BitVault announced a $2 million pre-seed funding round from investors including GSR, Gemini, Auros, and Keyrock to launch its Bitcoin-backed stablecoin, bvUSD, and yield-bearing sbvUSD.
The protocol will operate on Katana, a new DeFi-focused chain incubated by Polygon Labs and GSR.
BitVault’s stablecoins are collateralized by Bitcoin derivatives, offering an institutional-grade alternative to fiat-backed stablecoins. Only whitelisted institutional borrowers can mint bvUSD in bulk, while retail users can mint with stablecoins.
The platform leverages a licensed fork of Liquity V2 to enable permissioned borrowing, user-set interest rates, and automated liquidations.
Michael Kisselgof, BitVault core contributor, said the platform is designed to unlock Bitcoin’s utility with deep liquidity supported by strategic partners. GSR’s Alain Kunz highlighted growing demand for BTC-backed stablecoins that integrate with DeFi ecosystems.
The upcoming VCRAFT governance token will reward stability providers and liquidity contributors. BitVault plans mainnet launch on Katana in June 2025, with further DeFi and centralized exchange integrations expected.
The launch aims to position Bitcoin as a productive, capital-efficient asset within decentralized finance, offering an institutional-grade stablecoin with yield strategies driven by leading crypto market makers.
