Key Points
- Satoshi Protocol, a Bitcoin-backed stablecoin protocol, has raised $2 million in seed funding.
- The funds will be used to improve network security and expand integration across Layer-2 solutions.
Satoshi Protocol, a stablecoin protocol supported by Bitcoin (BTC), has successfully secured $2 million in its initial funding round. CMS Holdings and RockTree Capital led the investment.
Enhancing Network Security and Integration
The protocol, which allows Bitcoin holders to use their coins as collateral to create the native SAT stablecoin, intends to use the funding to upgrade network security. It also plans to broaden its integration across Layer-2 solutions, aiming for further traction within the ecosystem.
Satoshi Protocol is currently integrated with several Bitcoin protocols, including Bitlayer, BEVM, Omni Network, and Core Chain. The protocol recently partnered with Binance’s Web3 Wallet Campaign, reaching over 172,000 users.
The Impact of Stablecoin Integration
Satoshi Protocol’s co-founder and CEO, Naka, expressed that the funding round provides a significant boost to the protocol. It’s a positive step towards creating a universal stablecoin that caters to the needs of Bitcoin users. The capital injection will help it achieve its market and development objectives.
On the Satoshi Protocol, users can mint SAT stablecoins with BTC and liquid staking tokens (LST) as collateral. This minting process is accessible on both the Bitcoin mainnet and L2 networks within the ecosystem. This feature has helped Satoshi Protocol pioneer the integration of stablecoin utility in Bitcoin.
Vineet Budki, managing partner at Cypher Capital, commented on Satoshi Protocol’s approach to integrating stablecoins as a significant advancement within the Bitcoin ecosystem. Budki also noted that the investment reflects the VC platform’s confidence in Satoshi Protocol, adding that the L2 has enhanced liquidity options for BTC holders.
The seed round also saw participation from Metalpha, Optic Capital, Side Door Ventures, and Outliers Fund. Several prominent angel investors also backed the funding.
