On Wednesday, Galoy, the firm behind El Salvador’s Bitcoin Beach Wallet, announced that the company raised $4 million in funding in an investment round led by Hivemind Ventures. On the same day, the startup launched a new product called Stablesats, a stablecoin concept that leverages derivatives contracts to create a bitcoin-backed synthetic dollar pegged to the U.S. dollar. The Stablesats product allows people to transact via the Lightning Network and hedge against crypto market volatility at the same time.
Fintech Startup Galoy Raises $4 Million in a Funding Round Led by Hivemind Ventures
Galoy, the startup behind the Bitcoin Beach Wallet, has made two announcements on August 3. The first announcement details that the company has raised $4 million from strategic investors in order to “advance bitcoin-native banking infrastructure.” The funding round was led by Hivemind Ventures, but the recent financing stemmed from Alphapoint, Valor Equity Partners, Timechain, El Zonte Capital, Kingsway Capital, and Trammell Venture Partners. Galoy also stated that “other leading bitcoin investors” joined in on the funding round.
The founder of Hivemind Ventures, Max Webster, believes open source bitcoin banking is very important in order to bolster the global adoption of technologies like the Lightning Network. “Galoy dramatically lowers the barrier for any community or organization to become their own bank and plug into the world’s first open monetary and payments standard,” Webster explained in a press statement.
The Lightning Network (LN) is a layer two (L2) protocol built on top of Bitcoin that aims to scale the payments network and allow for peer-to-peer transactions with lower fees than onchain transactions. The founder of Galoy, Nicolas Burtey, wholeheartedly believes LN is the future of BTC payments. “It’s no secret that bitcoin and Lightning are disrupting traditional finance,” Burtey remarked during the fund raise announcement. “We see the Galoy team, contributors and clients as a community working together to build a bridge towards a more open and inclusive global financial system.”
Galoy Reveals Stablesats, a Lightning Network-Powered Bitcoin-Backed Synthetic Dollar
Presently, the value locked in the LN system is roughly $79.60 million, or around 3,418.14 BTC. In addition to the fundraising announcement, Galoy also revealed a new product called Stablesats. Galoy detailed in a blog post that the Stablesats product…
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