TL;DR
- Yala has raised $8 million in a seed funding round co-led by Polychain Capital and Ethereal Ventures, surpassing its $5 million goal.
- The startup is developing YU, a Bitcoin-backed stablecoin, which will be issued through the MetaMint protocol for the instant conversion of BTC into stablecoins.
- It also plans to introduce an insurance module called Takaful to protect users from Bitcoin price volatility and other associated risks.
Yala, a startup focused on developing a Bitcoin-backed stablecoin, has successfully raised $8 million in a seed funding round.
This round was co-led by Polychain Capital and Ethereal Ventures, attracting attention from various investors, including Galaxy Vision Hill, Anagram, Amber Group, and HashKey Capital, among others. According to Kaitai Chang, co-founder and COO of Yala, this round was oversubscribed, exceeding the original goal of raising $5 million.
We’re excited to announce our seed round co-led by @Polychain & @EtherealVC to build out the liquidity layer for Bitcoin.
— Yala (@yalaorg) October 10, 2024
Yala began the capital-raising process in March and completed the round last month, structuring it as a Simple Agreement for Future Equity (SAFE) with token warrants, although Chang did not disclose the company’s valuation.
Yala: Designed to Revolutionize Bitcoin
Founded in January 2024 by a team of former crypto industry professionals, Yala focuses on developing YU, a stablecoin that promises to generate yield for its users. The issuance of YU will take place through MetaMint, a cross-chain protocol that will enable the instant conversion of Bitcoin into stablecoins on EVM-compatible chains.
Yala has reported that it has already secured deposit commitments of over 2,000 BTC, equivalent to approximately $126 million. While the protocol currently accepts Bitcoin as collateral, it is expected to incorporate liquid staking tokens in the future.
In addition to the stablecoin, an insurance module called Takaful is planned to protect users from the volatility of BTC prices and other risks associated with high-risk activities. This module will represent an innovative approach to decentralized finance (DeFi) on BTC, facilitating collaborative risk management among participants.
When Will the Protocol Launch?
The Yala protocol is currently under development, with the testnet launch scheduled for this month and the mainnet implementation expected in the first quarter of next year. Additionally, the governance token, known as $YALA, is anticipated to launch alongside the mainnet, allowing users to participate in crucial decisions about the protocol’s development.
With a team of 23 professionals working remotely in various areas, Yala aims to expand its resources in engineering, business development, and marketing as it moves toward the launch of its innovative stablecoin and interconnected DeFi ecosystem
