On Thursday, Hubble Protocol—the Solana-based decentralized finance (DeFi) protocol behind stablecoin USDH—announced the completion of a $5 million fundraising round.
Led by Multicoin Capital, the raise brings Hubble’s total financing to date to $15 million. Past investors in the protocol include DeFiance Capital, Delphi Digital, Crypto.com Capital, Jump Capital, and others.
Hubble markets its signature financial product, USDH, as a “censorship-resistant, decentralized stablecoin.” Unlike other popular stablecoins like Circle’s USDC or Tether’s USDT—which are able to maintain their peg to the value of the US dollar by maintaining large reserves of US currency held at regulated American financial institutions—USDH is backed exclusively by cryptocurrencies.
By limiting USDH’s exposure to American banks, Hubble claims it is reducing both the stablecoin’s ability to be censored by the American government, and its need to answer to centralized institutions.
On Hubble, users can mint and borrow USDH in exchange for other crypto assets, at a ratio of up to 80% loan to value. Today’s fundraise will support development of new products and services that will allow users to transact or earn further yield on USDH throughout the Solana DeFi network.
“We want USDH to be the most trusted, most ubiquitous, decentralized, over-collateralized stablecoin in the world,” said Hubble co-founder Marius Ciubotariu, in a statement to Decrypt. “In order to achieve that, we have to continue to innovate with synergistic products and integrations that make USDH the most attractive stablecoin to hold, transact, or lend.”
Centralization and censorship resistance have been front of mind for the crypto community since last month, when the U.S. Treasury Department blacklisted a number of wallet addresses associated with sanctioned Ethereum coin-mixing tool Tornado Cash. In the aftermath of those sanctions, Circle preemptively froze all USDC present in those blacklisted wallets.
Privacy advocates decried the move as corporate compliance with unjust government censorship, and major DeFi organizations like MakerDAO publicly mulled over whether to fully divest from the stablecoin, which currently constitutes the majority of the DAO’s reserves.
Source : decrypt