Briefly:
Yala is developing YU, a Bitcoin-backed stablecoin with revenue-generating capabilities. Users will be able to mint YU by depositing Bitcoin to any destination blockchain through MetaMint. The company claims that it has already received 2,000 Bitcoin as a deposit for the protocol.
Bitcoin-backed stablecoin issuer Yala has raised $8 million in a seed round led by Polychain Capital and Ethereal Ventures. The funding also saw participation from Galaxy Vision Hill, Anagram, ABCDE, Amber Group, HashKey Capital, Satoshi Lab, and UTXO Management.
Kaitai Chang, co-founder and COO of Yala, said the funding was structured as a simple agreement for future equity (SAFE) with token warrants, raising an initial $5 million. He added that the planned round was oversubscribed.
Yala is developing a Bitcoin-backed stablecoin YU with the ability to earn revenue. This follows an emerging segment of the stablecoin industry that is attracting investors looking to earn revenue from crypto assets without leaving blockchain rails.
According to the company, its protocol has already attracted more than 2,000 Bitcoin deposits. The protocol plans to enable support for liquid staking tokens in the future. The company is also adding insurance features to its protocol to address challenges such as Bitcoin’s 10-minute block generation time.
“The insurance module, Takaful, represents Yala’s innovative approach to DeFi on Bitcoin, creating a collaborative framework for participants, insurers, and shareholders to jointly manage risk and return.” said Mr. Chan.
Initially, users will be able to mint YU by depositing Bitcoin to any destination blockchain through MetaMint. Chang described MetaMint as “a cross-chain protocol that allows users to instantly convert native BTC to stablecoins on EVM-compatible chains, eliminating the need for intermediate wrapping.”
The protocol is scheduled for testnet launch this month, with mainnet deployment and governance tokens expected in the first quarter of 2025.
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