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Satoshi Protocol, a stablecoin protocol backed by Bitcoin (BTC), has successfully raised $2 million in its seed funding round led by CMS Holdings and RockTree Capital.
The protocol, which enables Bitcoin holders to use their coins as collateral to mint the native SAT stablecoin, plans to use the funds to enhance network security and expand its integration across Layer-2 solutions, aiming for further traction within the ecosystem.
Satoshi Protocol currently integrates with several Bitcoin protocols, including Bitlayer, BEVM, Omni Network, and Core Chain. The protocol recently collaborated with Binance’s Web3 Wallet Campaign, reaching over 172,000 users.
Satoshi Protocol’s stablecoin integration
In a statement, Satoshi Protocol co-founder and CEO Naka said that the funding round is a huge boost for the protocol. Among other benefits, its a step in the right direction as the protocol looks to create “a universal stablecoin that meets the needs of Bitcoin users.”
Capital injection will allow it to reach its market and development goals, Naka added.
On the Satoshi Protocol, users can mint SAT stablecoins with BTC and liquid staking tokens (LST) as collateral. The minting can is accessible both on the Bitcoin mainnet and L2 networks within the ecosystem, a factor that has seen Satoshi Protocol take the lead in bringing stablecoin utility to Bitcoin.
“Satoshi Protocol’s approach to integrating stablecoins is a real leap forward within the Bitcoin ecosystem,” Vineet Budki, managing partner at Cypher Capital, commented.
The investment reflects the VC platform’s confidence in Satoshi Protocol, Budki added, noting that the L2 has boosted liquidity options for BTC holders.
Apart from Cypher Capital and RockTree, the seed round attracted the participation of Metalpha, Optic Capital, Side Door Ventures and Outliers Fund. The funding also received backing from notable angel investors.