Bitcoin-backed stablecoin protocol Satoshi Protocol announced that it has raised $2 million in its seed financing round led by CMS Holdings and RockTree Capital, with additional participation from Cypher Capital, Metalpha, Optic Capital, Side Door Ventures, Outliers Fund, and several prominent angel investors.
“The support from our investors is crucial as we work towards creating a universal stablecoin that meets the needs of Bitcoin users,” said Naka, Founder and CEO of Satoshi Protocol. “This funding allows us to achieve these critical development and market goals,” he added.
With the newly raised capital, Satoshi Protocol intends to enhance its security measures, expand integrations with various Layer 2 solutions, and increase its global presence. This new funding follows a pre-seed round closed in March, with an undisclosed investment amount led by Web3Port Foundation, Waterdrip Capital, BEVM Foundation, and other investors.
How Does Satoshi Protocol Work?
Satoshi Protocol allows users to collateralize BTC or liquid staking tokens (LST) to mint the stablecoin SAT on the Bitcoin mainnet and various Layer 2 networks. This approach introduces a stable and utility-focused asset within the Bitcoin ecosystem.
The protocol is built around two main components: SAT, a stablecoin pegged to the United States dollar, and OSHI, a utility token that incentivizes and rewards ecosystem participants. Users can mint SAT by collateralizing their Bitcoin and other assets through the Satoshi Protocol, maintaining a minimum collateral ratio of 110%. This process promotes liquidity generation and allows SAT holders to redeem their collateral via a redemption mechanism, ensuring the stable value of SAT.
Furthermore, as a multichain protocol, it features its stablecoin SAT with a highly compatible multi-token standard mechanism. This design allows SAT to circulate freely across various blockchain standards, including the Bitcoin mainnet, enhancing its usability and interoperability across different blockchain ecosystems.
The protocol has gained notable traction through numerous integrations within the Bitcoin ecosystem, including platforms such as BOB, Bitlayer, BEVM, Core Chain, Botanix, B^2, Alys/Anduro (Marathon Holding), and Omni Network. Additionally, it recently collaborated with the Binance Web3 Wallet Campaign, engaging over 172,000 users.
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