Bitcoin-backed stablecoin developer Hermetica raises $1.7 million in seed funding

The Bitcoin-backed stablecoin developer Hermetica raised $1.7 million in seed funding.

UTXO Management led the round, which had further support from CMS Holdings, Ethos Fund, Trust Machines SPV, Newman Capital, Silvermine and numerous angel investors, according to a release shared with The Block.

Hermetica develops the yield-bearing synthetic dollar USDh, which is issued on the Bitcoin network. The firm intends to use the funding to bolster the USDh ecosystem such as through custodial partnerships and enhanced liquidity.

"The seed funding will allow us to further our mission of making a dollar asset and dollar savings instrument available to users in emerging markets," Hermetica Founder and CEO Jakob Schillinger told The Block. "We plan on using the funds to expand to additional Bitcoin L2s such as Arch Network and Bitlayer in the coming months."