PANews reported on October 16 that according to The Block, Bitcoin-backed stablecoin development company Hermetica raised $1.7 million in a seed round of financing. The financing was led by UTXO Management, with participation from CMS Holdings, Ethos Fund, Trust Machines SPV, Newman Capital, Silvermine and several angel investors. Hermetica has developed a yield-based synthetic USDh, which is issued on the Bitcoin network, and plans to use the funds to strengthen the USDh ecosystem, including custody partnerships and improving liquidity. Jakob Schillinger, founder and CEO of Hermetica, said that it will expand to Bitcoin Layer 2 networks such as Arch Network and Bitlayer in the coming months.