DeFi Protocol BitVault Secures $2 Million Pre-Seed Round, Aims to Redefine Bitcoin’s Role in Stablecoin Infrastructure
In a significant development in the decentralized finance (DeFi) space, Berlin-based BitVault has announced the close of a $2 million pre-seed round. The investment round attracted strategic investors including GSR, Gemini, Auros, and Keyrock among others, who have joined forces with BitVault to build what it claims is "the next era of BTC-backed money": an institutionally aligned alternative to fiat-pegged stablecoins.
The raise will support the launch of bvUSD, BitVault’s overcollateralized stablecoin backed by Bitcoin derivatives, and sbvUSD, its yield-bearing variant powered by institutional trading strategies provided by GSR. BitVault will serve as a core stablecoin protocol on Katana, a new DeFi-first chain incubated by Polygon Labs and GSR prioritizing deep liquidity and user rewards.
"Bitcoin was built for moments of fracture," said Michael Kisselgof, Core Contributor of BitVault and VaultCraft. "BitVault was built to make it usable." Kisselgof emphasized the importance of onboarding strategic investors like GSR, Auros, and Keyrock as they can execute high-yielding, non-directional strategies to create demand and deep liquidity for BTC-backed money.
Stablecoins at an Inflection Point
BitVault arrives amidst rising demand for crypto-native stability in a fragmented global monetary environment. Unlike fiat-backed stablecoins such as USDC or algorithmic options like Ethena’s USDe, bvUSD is collateralized by BTC derivatives. Only whitelisted institutional borrowers can mint bvUSD in bulk, while anyone can mint bvUSD using stablecoins—mitigating risks associated with overleveraged or anonymous borrowing.
DeFi users can earn yield by staking bvUSD into sbvUSD, which leverages delta-neutral and arbitrage strategies managed by GSR, a globally recognized crypto investment firm specializing in market making, OTC trading, and options. "We’re seeing growing interest in BTC-backed stablecoins, especially those designed to integrate seamlessly into DeFi ecosystems," said Alain Kunz, Director from GSR, who participated in the round.
BitVault’s approach with experience in institutional-grade yield strategies positions it well for success, according to Kunz. The deployment on Katana, a DeFi-centric chain incubated by Polygon Labs and GSR, adds a new layer of stablecoin utility, enabling BTC to take on a more productive role within Katana’s high-yield DeFi stack.
From Liquity to Katana
BitVault is a friendly fork of Liquity V2, re-engineered for institutional use under a licensed deployment agreement with Liquity AG. The protocol blends automated, governance-free mechanisms with a permissioned borrowing layer, offering stability while retaining core DeFi primitives like direct redemption and composable yield strategies.
Its upcoming VCRAFT token will govern future protocol parameters and serve as a rewards mechanism for stability providers and liquidity contributors. The launch on Katana positions BitVault at the heart of an emerging liquidity and settlement network across the EVM chain.
Initial Integrations
Initial integrations include Vault infrastructure, Morpho money markets, Sushi AMMs, and a multichain "Bits" points campaign tied to VCRAFT distribution. This strategic integration with various DeFi players aims to create a seamless experience for users while fostering deep liquidity.
What’s Next
BitVault is scheduled for mainnet deployment on Katana in June 2025, with broader integrations across DeFi ecosystems and centralized liquidity venues in the works. The team plans to expand its stablecoin suite to support additional BTC-based collateral assets and is actively onboarding institutional borrowers.
About BitVault
BitVault is a DeFi protocol that offers a crypto-native solution for money through its BTC-backed stablecoin, bvUSD, and a yield-bearing staked stablecoin, sbvUSD. The protocol is designed to provide an institutional-grade, capital-efficient stablecoin with user-set interest rates, multi-collateral backing, and enhanced liquidity mechanisms.
The success of this innovative protocol hinges on its ability to balance stability and yield, offering users a reliable gateway for storing and utilizing their assets while generating income through various strategies. BitVault’s vision to redefine the role of Bitcoin in stablecoin infrastructure is a bold step towards creating a more integrated and efficient DeFi landscape.
Conclusion
The arrival of BitVault marks a significant inflection point in the evolution of decentralized finance, where traditional notions of stability and yield are redefined through innovative applications of blockchain technology. As this pioneering protocol takes its first steps into the mainnet with Katana, the stage is set for a new chapter in DeFi history. With strategic investments from established players like GSR, Gemini, Auros, and Keyrock among others, BitVault positions itself as a serious contender to shape the future of stablecoins and institutional-grade DeFi solutions.
The journey ahead will undoubtedly be challenging, but with its focus on delivering institutional-grade stability, yield, and liquidity mechanisms, BitVault is poised to disrupt the status quo in DeFi and reorient the global monetary landscape.