Galoy raises $4Mn; Unveils Stablesats to strengthen product portfolio

Galoy raises $4Mn; Unveils Stablesats to strengthen product portfolio

Galoy, a developer of Bitcoin banking software and creator of the Bitcoin Beach Wallet, has recently made it to the news for 2 new developments.

The first is that the fintech startup has successfully raised $4 million from strategic investors to innovate a bitcoin-native banking framework and second being the introduction of bitcoin-supported synthetic dollar product.

Although Hivemind Ventures headed the funding round, the current funding originated from Alphapoint, Valor Equity Partners, El Zonte Capital, Kingsway Capital, Timechain, and Trammell Venture Partners.

According to Founder of Hivemind Ventures, Max Webster, open-source bitcoin banking is crucial to reinforce the adoption of technologies like the Lightning Network.

With Galoy, communities and organizations can become their own banks and access the open monetary & payments standard, said Webster in a statement.

It is imperative to note that the LN (Lightning Network) is an L2 (layer two) protocol rolled out on top of Bitcoin, intended to upscale the payment network and authorize peer-to-peer transactions with lower fees than onchain transactions.

While commenting on the latest accomplishment, Nicolas Burtey, Galoys Founder, mentioned that LN is the future of BTC payments. Additionally, it is quite evident that bitcoin and Lightning are revolutionizing the traditional finance space.

Burtey, during the fundraising announcement, commented that the team of Galoy, contributors and clients would be working together to create a link between a broad and comprehensive global financial system.

For the record, the value enclosed in the LN system is around $79.60 million, or around 3,418.14 BTC

Elaborating on the launch of Stablesats- a new LN powered biotcoin-backed synthetic dollar product- Galoy detailed that the Stablesats product is one of the latest features added to the crypto payment platform.

It has been reported that using derivatives contracts, Stablesats creates a bitcoin-backed synthetic dollar pegged to USD as an alternative to stablecoins or fiat bank integration.

Source Credit - https://news.bitcoin.com/fintech-firm-galoy-raises-4-million-startup-introduces-bitcoin-backed-synthetic-dollar-product/