Bermuda-based startup Stablehouse, which touts itself as a payment and FX exchange platform for stablecoins, today announced the completion of a $2.18 million seed funding round. The new investment was backed by Dragonfly Capital and Liberty City Ventures.
Stablehouse.io will use the funds to grow its platform and add hires in sales, services, and engineering in order to provide the infrastructure for stablecoins. It aims to address key issues such as liquidity, stability and accessibility through a centralised, API-enabled platform that facilitates trading major fiat-backed coins, including Tether, Gemini dollar, Paxos, TrueUSD, USD Circle (USDC) and DAI.
Stablehouse, which boasts as an advisor Phil Potter, former Chief Strategy Officer of Bitfinex and Tether, works on the basis of the classic clearing house model and allows users to trade stablecoins at a liquid market price for a fixed minimum fee.
Commenting on the news, Stablehouse CEO, Philippe Bekhazi said: “We are thrilled to have such a high calibre of investors on board and are honoured to have this level of support. We are fortunate to have backing from some of the most renowned and successful leaders in the space and are delighted to have access to their knowledge, expertise, and guidance as we progress the stablecoin market. This is only the beginning of a bright future for Stablehouse as we commence our Series A in Q1 2021.”
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Bermuda Embraces Blockchain Firms
“Our investment in Stablehouse aligns with our mission to support entrepreneurs tackling the most important problems in crypto. Stablehouse helps stablecoin markets overcome their persistent issues of inconsistent liquidity and lack of stability. Stablecoins will be the backbone of the digital economy, and we believe Stablehouse is poised to become the capital markets, payment, and settlement nexus for all centralized and decentralized Stablecoins,” added Kevin Hu, Partner at Dragonfly Capital.
Stablehouse has recently launched a test pilot program for a digital stimulus token in partnership with the Government of Bermuda.
Bermuda hopes the embracing of blockchain firms would create a booming new revenue source while assuring startups their project will not fall subject to restrictive regulations.
British Overseas Territory grants the so-called ‘Class F (‘Full’) DABA’ license to digital asset exchanges, as well as crypto platforms, e-wallets and other operators of similar structures. The approved applicants work under the Digital Asset Business Act 2018, and the supervision of Bermuda’s primary regulator, the Bermuda Monetary Authority (BMA).
The legislation was obviously designed to attract cryptocurrency entrepreneurs, who are moving businesses to locations more welcoming as they face intensifying scrutiny from regulators across the globe.