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Figure Heloc BitVault Raises $2M to Launch Bitcoin-Backed Stablecoin That Could Reshape DeFi
David Rich 
BitVault has just raised $2 million in a pre-seed round backed by some of the biggest names in the crypto world, including GSR, Gemini, Auros, and Keyrock. But this isn’t just another early-stage funding story — it’s the beginning of a bold attempt to reshape how Bitcoin fits into the stablecoin market.
The Berlin-based startup is building what it calls the next chapter in Bitcoin-backed money. At the heart of its mission is bvUSD, a stablecoin that’s not tied to the dollar but instead secured by BTC derivatives. Alongside that, BitVault is rolling out sbvUSD, a version of the coin that earns passive yield using trading strategies developed by institutional partners like GSR.
This move comes at a time when the stablecoin space is getting more crowded — and more complicated. From fully fiat-backed coins like USDC to experimental algorithmic models, the market is searching for stability, scalability, and trust. BitVault thinks Bitcoin — combined with DeFi smarts — might be the answer.
According to Michael Kisselgof, a core contributor to BitVault, the idea is to make Bitcoin actually usable as stable infrastructure in DeFi, not just as a store of value. “Bitcoin was built for moments of fracture,” he said. “BitVault was built to make it usable.”
What makes BitVault different is its institutional-first model. Instead of letting anyone mint the stablecoin with crypto collateral, only whitelisted institutional players can do so using BTC derivatives. Meanwhile, regular users can mint bvUSD with stablecoins, which keeps the system more controlled and reduces risk.
Once minted, users can stake bvUSD into sbvUSD — a yield-bearing variant that uses delta-neutral and arbitrage strategies to generate returns. Those strategies are handled by GSR, a heavyweight in crypto market making and OTC trading. In simple terms, it’s a way to put your Bitcoin-backed stablecoin to work without having to worry about wild price swings.
BitVault will live on a new blockchain called Katana, which was incubated by Polygon Labs and GSR. Katana is built specifically for DeFi, and BitVault is one of its cornerstone protocols. The tech stack is based on a licensed version of Liquity V2 — a popular borrowing protocol — but modified for institutional use. That includes things like permissioned borrowing, user-set interest rates, and automated liquidation systems.
There’s also a token on the way: VCRAFT. It’ll govern future decisions on the protocol and serve as a reward mechanism for people providing stability and liquidity.
GSR, which helped incubate the Katana chain, sees BitVault as a natural fit. “There’s growing interest in BTC-backed stablecoins, especially ones that work well with DeFi,” said Alain Kunz, a director at GSR. He pointed to the combination of institutional-grade strategies and native DeFi design as a compelling setup for long-term adoption.
The launch is set for later this month, and the team has already lined up integrations with Sushi’s liquidity pools, the Morpho lending protocol, and a vault system for managing assets. They’re also kicking off a multichain points campaign tied to the release of VCRAFT.
Looking ahead, BitVault plans to expand its stablecoin lineup to support other types of Bitcoin-based collateral. They’re also continuing to onboard new institutional partners who can help create the liquidity the system needs to thrive.
In a space that’s constantly evolving, BitVault is betting that the next big leap for Bitcoin isn’t a price rally — it’s becoming the backbone of something stable, productive, and deeply integrated into decentralized finance.
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