Satoshi Protocol raises $2m to expand liquidity for Bitcoin holders

Satoshi Protocol, a Bitcoin (BTC)-backed stablecoin protocol, has managed to raise $2 million in a seed funding round led by CMS Holdings and RockTree Capital.

The protocol, which allows Bitcoin holders to use their coins as collateral to mint its native SAT stablecoin, plans to use the funds to improve network security and expand its integration into Layer-2 solutions, aiming to gain more momentum within the ecosystem.

Satoshi Protocol currently integrates with various Bitcoin protocols, including Bitlayer, BEVM, Omni Network, and Core Chain. The protocol recently partnered with Binance’s Web3 Wallet Campaign, reaching over 172,000 users.

Stablecoin integration of Satoshi Protocol

Satoshi Protocol co-founder and CEO Naka said in a statement that the funding round is a major boost for the protocol. Among its other benefits, it’s a step in the right direction as the protocol aims to create a “universal stablecoin that meets the needs of Bitcoin users.”

Naka added that the capital injection will enable the company to achieve its market and development goals.

On the Satoshi Protocol, users can mint SAT stablecoins with BTC and liquid staking tokens (LST) as collateral. The minting box is accessible on both the Bitcoin mainnet and L2 networks within the ecosystem, a factor that shows that the Satoshi Protocol is leading the way in bringing stablecoin utility to Bitcoin.

“Satoshi Protocol’s approach to integrating stablecoins is a real leap forward within the Bitcoin ecosystem,” commented Vineet Budki, managing partner at Cypher Capital.

Budki noted that the investment reflects the VC platform’s confidence in the Satoshi Protocol, adding that L2 increases liquidity options for BTC holders.

In addition to Cypher Capital and RockTree, the seed round saw participation from Metalpha, Optic Capital, Side Door Ventures, and Outliers Fund. The funding also received support from notable angel investors.