According to Foresight News, Bitcoin-backed stablecoin developer Hermetica has successfully raised $1.7 million in a funding round led by UTXO Management. The round also saw participation from CMS Holdings, Ethos Fund, Trust Machines SPV, Newman Capital, Silvermine, and several angel investors.

Hermetica has developed a yield-bearing synthetic dollar, USDh, which is issued on the Bitcoin network. The company plans to use the newly acquired funds to support the USDh ecosystem, including establishing custodial partnerships and enhancing liquidity. Additionally, Hermetica aims to expand to other Bitcoin Layer 2 solutions, such as Arch Network and Bitlayer, in the coming months.