The Hermetica platform, backed by Bitcoin, is introducing its synthetic dollar, USDh, to the Stacks Bitcoin Layer 2 (L2) network. This move marks USDh as the pioneering Bitcoin-backed stablecoin to join the rapidly expanding Stacks ecosystem.
Bitflow’s CEO, Dylan Floyd, expressed his enthusiasm for the launch, highlighting USDh’s qualities such as being fully backed by Bitcoin, capital-efficient, and capable of offering sustainable crypto-native yield. The integration of USDh enables users to access a stable, dollar-pegged coin backed by Bitcoin, allowing for up to a 25% yield while operating within the Bitcoin ecosystem. USDh distinguishes itself from traditional stablecoins by granting users full control over assets without reliance on traditional financial institutions.
Hermetica’s CEO, Jakob Schillinger, stressed the significance of this integration, emphasizing the role of USDh in scaling Bitcoin DeFi on Stacks. The stablecoin market opportunity, currently valued at $160 billion globally, represents just a fraction of Bitcoin’s vast $1.3 trillion market cap. Hermetica aims to tap into this opportunity by offering a stablecoin backed by Bitcoin that operates seamlessly on Bitcoin’s L1 and L2 networks.
The successful launch of USDh on the Stacks network is celebrated by industry leaders for providing a stablecoin secured by Bitcoin. This move is expected to boost stablecoin liquidity, becoming a key element in the Stacks ecosystem’s development. Initially launched on the Bitcoin Layer-1 Runes protocol, USDh quickly gained traction within DeFi platforms like Liquidium and MagicEden. The forthcoming major upgrade for Stacks in September 2024, featuring faster block times and full Bitcoin finality, is anticipated to further drive DeFi growth, making the inclusion of USDh a significant milestone for the platform and Bitcoin-backed financial solutions in general.