Fintech firm Galloy raises $4 million, startup introduces bitcoin-backed synthetic dollar product – Bitcoin News - India Blogger

On Wednesday, Galoy, the firm behind El Salvador-based Bitcoin Beach wallet, announced that the company has raised $4 million in funding in an investment round led by Hivemind Ventures. The same day, the startup launched a new product called Stablesats, a stablecoin concept that leverages derivative contracts to create a bitcoin-backed synthetic dollar pegged to the US dollar. The Stablesats product allows people to transact through the Lightning Network and hedge against the volatility of the crypto market at the same time.

Fintech startup Galloy raises $4 million in funding round led by Hivemind Ventures

Galloy, the startup behind the Bitcoin Beach wallet, made two announcements on Aug. The first announcement details that the company has raised $4 million from strategic investors to “advance the bitcoin-native banking infrastructure.” The funding round was led by Hivemind Ventures, but most recent funding came from AlphaPoint, Valor Equity Partners, Timechain, El Zonte Capital, Kingsway Capital and Trammel Venture Partners. Galloy also said that “other major bitcoin investors” joined the funding round.

Max Webster, founder of Hivemind Ventures, believes that open source bitcoin banking is very important for the global adoption of technologies such as the Lightning Network. “Galloy dramatically lowers the barrier for any community or organization to become its 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 payment network and allow peer-to-peer transactions with lower fees than on-chain transactions. Galloy’s founder, Nicolas Burte, whole-heartedly believes that LN is the future of BTC payments. “It’s no secret that Bitcoin and Lightning are disrupting traditional finance,” Bertie commented during the fund-raising announcement. “We see the Galloy team, contributors and customers as a community working together to build a bridge towards a more open and inclusive global financial system.”

Galloy Unveils Stablesat, a Lightning Network-powered bitcoin-backed synthetic dollar

Currently, the closing price in the LN system is around $79.60 million, or about 3,418.14 BTC. In addition to the fundraising announcement, Galloy also revealed a new product called StableSat. Galloy elaborated in a blog post that the Stablesats product is one of the latest features to be added to the crypto payment platform. “An alternative to stablecoin or fiat bank integrations, stablecoins uses derivatives contracts to create bitcoin-backed synthetic dollars,” Galloy’s blog post said. Galloy’s declaration stated:

This enables dollar-equivalent USD accounts inside the Lightning Wallet, solving one of the biggest problems for people using bitcoin for daily transactions: short-term exchange rate volatility.

Bertie believes that technologies such as the Lightning Network and Stablesat will help digital transactions flourish in regions around the world. “Bitcoin has brought digital transactions to unbanked communities in Latin America, Africa and beyond,” Bertie commented on Wednesday. “However, its volatility makes it difficult to manage financial obligations. With a Stablesat-enabled Lightning Wallet, users are able to send, receive, and hold money from a USD account in addition to their default BTC account. While the dollar value of their [bitcoin] The account fluctuates, regardless of the bitcoin exchange rate, $1 remains in their USD account.”

The Stablesats product has its own website which gives a detailed summary of what it is and how to use the technology. Galoy’s open-source codebase for Stablesats and its other products can be found on Github. Stablesats, in particular, uses “a tool called perpetual inverse swaps to create synthetic USD,” and the team notes that “there are other interesting avenues to explore.”

Tags in this story

$4 million, bitcoin, bitcoin (BTC), BTC-backed, derivatives contract, El Zonte Capital, fundraise, galloy, galloy founder, Hivemind Ventures, Kingsway Capital, Lightning Network, ln, Nicolas Bertie, product launch, stablecoin, stablecoins , Stable Products, Synthetic Dollar, Timechain, Trammel Venture Partners, Valor Equity Partners

What do you think about Galloy raising $4 million from strategic investors? What do you think of Galloy’s StableSat product? Let us know what you think about this topic in the comment section below.

Jamie Redmayne

Jamie Redmayne is the News Lead at Bitcoin.com News and a financial tech journalist based in Florida. Redmayne has been an active member of the cryptocurrency community since 2011. He has a passion for bitcoin, open-source code, and decentralized applications. Since September 2015, Redmayne has written over 5,700 articles for Bitcoin.com News about the disruptive protocols emerging today.

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