Fintech Firm Galoy Earns $4 Million, Startup Introduces Bitcoin-Backed Synthetic Dollar Product – Bitcoin News

On Wednesday, Galoy, the company behind the El Salvador-based Bitcoin Beach wallet, announced that the company has 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 derivative contracts to create a Bitcoin-backed synthetic dollar pegged to the US dollar. The Stablesats product allows people to transact on the Lightning Network and hedge against the volatility of the cryptocurrency market at the same time.

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

GalwayThe startup behind Bitcoin Beach Wallet made two announcements on August 3. The first announcement states that the company has raised $4 million from strategic investors in order to “develop the original Bitcoin banking infrastructure.” Hivemind Ventures led the funding round, but the latest funding originated from Alphapoint, Valor Equity Partners, Timechain, El Zonte Capital, Kingsway Capital and Trammell Venture Partners. Galoy also stated that “other leading Bitcoin investors” have joined the funding round.

Max Webster, founder of Hivemind Ventures, believes that open source bitcoin banking is critical to promoting global adoption of technologies like the Lightning Network. “Galoy dramatically lowers the barriers to any community or organization becoming its own bank and entering the world’s first open cash and payments standard,” Webster explained in a press release.

The Lightning Network (LN) is a Layer 2 (L2) protocol built on top of Bitcoin that aims to scale the payments network and allow peer-to-peer transactions with lower fees than onchain transactions. Galoy founder, Nicholas Berti, sincerely believes that LN is the future BTC payments. “It is no secret that Bitcoin and Lightning are disrupting traditional finance,” Bertie said during the fundraising announcement. “We see the Galoy team, shareholders and customers as a community working together to build a bridge towards a more open and inclusive global financial system.”

Galloway unveils stables, a synthetic dollar powered by the Lightning Network

At the moment, the value installed in the LN system is about $79.60 million, or so3,418.14 Bitcoin. In addition to the fundraising announcement, Galoy also revealed a new product called Stablesats. Galoy explained in a blog post that the Stablesats product is one of the latest features to be added to the crypto payment platform. “As an alternative to stablecoins or fiat bank integrations, Stablesats use derivative contracts to create a bitcoin-backed synthetic dollar pegged to the US dollar,” says Galloway’s blog post. Galloway’s ad adds:

This enables US dollar accounts within Lightning wallets, 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 Stablesats will help digital transactions thrive in regions around the world. “Bitcoin has brought digital transactions to previously unbanked communities across Latin America, Africa and beyond,” Berti commented on Wednesday. However, its volatility makes managing financial obligations difficult. With Stablesats-enabled Lightning wallets, users can send, receive and hold money in a US dollar account in addition to their virtual account BTC the account. While the dollar value of [bitcoin] The account fluctuates, 1 USD remains in their USD account with 1 USD regardless of the Bitcoin exchange rate.”

Product Stablesats has its own website Which gives a detailed summary of what it is and how to use the technology. Galoy’s open source database of Stablesats and its other products can be seen github. Stablesats, specifically, use “a tool called perpetual inverse swaps to create a synthetic US dollar” and the team notes that there are “other interesting ways to explore.”

Tags in this story

$4 million, bitcoin, bitcoin (BTC), derivative contracts backed by BTC, El Zonte Capital, Fundraise, Galoy, Galloy Founder, Hivemind Ventures, Kingsway Capital, lightning network, ln, Nicolas Burtey, Product Launch, Stablecoin, Stablesats, Stablesats Product, Synthetic Dollar, Timechain, Trammell Venture Partners, Valor Equity Partners

What do you think about Galoy raising $4 million from strategic investors? What do you think of Galoy’s Stablesats? Tell us what you think about it in the comments section below.

Jimmy Redman

Jamie Redman is the head of news at News and a technology financial journalist based in Florida. Redman 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, Redman has written more than 5,700 articles for News about the disruptive protocols emerging today.

photo credits: Shutterstock, Pixabay, Wiki Commons, Galoy,

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