Hermetica expands Bitcoin-backed stablecoin USDh to Stacks L2

Bitcoin-backed stablecoin USDh launches on Stacks L2, offering new DeFi options.

Hermetica has taken a significant step towards Bitcoin-based decentralized finance by extending its Bitcoin-backed stablecoin USDh to its Stacks (STX) Layer 2 network.

According to a press release shared with crypto.news, the move allows users to hold USDh, a stablecoin pegged to the US dollar and fully backed by Bitcoin (BTC), and earn returns of up to 25%.

Unlike typical stablecoins that are backed by fiat reserves at banks, USDh is completely tied to Bitcoin, allowing Bitcoin users to earn yield and trade in dollars without leaving the Bitcoin ecosystem.

US dollars

USDh first gained momentum on Bitcoin’s Layer 1 four months ago and quickly attracted $2 million in Total Locked Value, demonstrating the strong demand for Bitcoin-backed stablecoins. By expanding into Stacks, Bitcoin L2, Hermetica aims to reach a broader DeFi user base while maintaining Bitcoin’s security features.

Recently updated to offer faster block times, Stacks is an ideal platform for USDh growth.

Major decentralized exchanges like Bitflow Finance, Velar, and Zest Protocol are integrating USDh, expanding its use in the ecosystem. This launch aims to unlock Bitcoin’s untapped potential and allow holders to access stablecoin liquidity without leaving the Bitcoin environment.

With only 1% of Bitcoin’s $1.3 trillion market cap being in DeFi, USDh could bridge the gap between Bitcoin’s value and the growing DeFi market.