BitVault raised $2 million from GSR, Gemini, and Auros to launch Bitcoin-backed funds
Bitcoin World
BitVault raised $2 million from GSR, Gemini, and Auros to launch Bitcoin-backed funds
Berlin, Germany, June 18, 2025, Chainwire
The decentralized finance (DeFi) protocol BitVault, aiming to redefine Bitcoin's role in the stablecoin infrastructure, announced the closing of a $2 million seed funding round. Among the strategic investors are GSR, Gemini, Auros, and Keyrock, among others, joining BitVault in building what is called "the new era of Bitcoin-backed currencies": an institutional alternative to stablecoins tied to traditional currencies.
This funding supports the launch of bvUSD, a BitVault stablecoin with over-collateralization backed by Bitcoin derivatives, and sbvUSD, its yield-bearing variant supported by GSR's institutional trading strategies.
BitVault will operate as a core stablecoin protocol on Katana, a new DeFi chain first incubated by Polygon Labs and GSR, prioritizing deep liquidity and user rewards, leveraging a licensed fork of Liquity V2 to enable permitted borrowing, user-defined interest rates, and automated liquidation infrastructure.
Bitcoin was designed for collapse cases. BitVault, however, was designed to make it usable, stated Michael Kieslgof, a key contributor to BitVault and Voltcraft. He added: "We specifically included GSR, Auros, and Keyrock as strategic investors capable of executing high-yield and non-directional strategies to create demand and deep liquidity for Bitcoin-backed funds."
Stablecoins at the Turning Point
BitVault comes amid increasing demand for cryptocurrency stability in a fragmented global monetary environment. Unlike traditional currency-backed stablecoins like USDC or algorithmic options like USDe from Ethena, bvUSD is secured by BTC derivatives.
Only whitelist institutional borrowers can mint bvUSD in large quantities, while anyone can mint bvUSD using stablecoins, alleviating risks associated with excessive borrowing or anonymity. DeFi users can earn yields by investing bvUSD in sbvUSD, which benefits from delta-neutral strategies and arbitrage managed by GSR, a global cryptocurrency investment firm specializing in market making, OTC trading, and options.
Alan Kohns, GSR's director, who participated in the round, said: "We are seeing increasing interest in Bitcoin-backed stablecoins, especially those designed for seamless integration with decentralized finance systems." He added: "BitVault's approach and expertise in institutional yield strategies position it for success. We are particularly excited to deploy it on the Katana platform, a chain focused on decentralized finance, which we have helped incubate. BitVault adds to the advanced Katana ecosystem by providing a new level of stablecoin utility, enabling BTC to play a more productive role within Katana's suite of high-yield decentralized finance platforms."
From Liquity to Katana
BitVault is a user-friendly version of Liquity V2, redesigned for institutional use under a licensed deployment agreement with Liquity AG. The protocol combines governance-free automated mechanisms with a licensed borrowing layer, providing stability while maintaining the core fundamentals of decentralized finance (DeFi), such as direct redemption and configurable yield strategies.
The upcoming VCRAFT token will govern future protocol parameters and serve as a reward mechanism for stability providers and liquidity contributors.
The launch of the Katana platform, incubated by Polygon Labs and GSR, positions BitVault at the heart of an emerging cross-chain EVM liquidity and settlement network. Initial integrations include the Vault infrastructure, Morpho cash markets, Sushi AMMs, and a multi-chain "Bits" points campaign tied to VCRAFT distribution.
What's Next
BitVault is set to launch on the mainnet on the Katana platform in June 2025, while working on broader integrations across decentralized finance (DeFi) systems and centralized liquidity hubs. The team plans to expand its stablecoin suite to support additional Bitcoin (BTC)-based collateral assets and is actively seeking institutional borrowers.
About BitVault
BitVault is a decentralized finance (DeFi) protocol that provides a cryptocurrency-based solution for money through its Bitcoin (BTC) backed stablecoin, bvUSD, and its yield-bearing collateralized stablecoin, sbvUSD. The protocol is designed to offer a highly capital-efficient stablecoin at an institutional level, with user-defined interest rates, multi-collateral support, and enhanced liquidity mechanisms.
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Contact
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This post was published BitVault raises $2 million from GSR, Gemini, and Auros to launch Bitcoin-backed funds for the first time on BitcoinWorld and was written by chainwire
