TechFlow reports, on October 10, according to The Block, Yala, a stablecoin developer in the Bitcoin ecosystem, announced it has raised $8 million in seed funding. The round was co-led by Polychain Capital and Ethereal Ventures, with participation from Galaxy, Anagram, ABCDE, Amber Group, HashKey Capital, Satoshi Lab, and UTXO Management.
Kaitai Chang, co-founder and COO of Yala, said the company initially planned to raise $5 million but ended up oversubscribed. The financing was structured as a SAFE (Simple Agreement for Future Equity) with token warrants. Yala is developing a Bitcoin-backed, yield-generating stablecoin called YU. Users will be able to mint YU by depositing Bitcoin into any target blockchain via the MetaMint cross-chain protocol. The company claims investors have committed to depositing over 2,000 Bitcoins (approximately $126 million) into its protocol.
Yala plans to launch its testnet this month, with mainnet expected to go live in the first quarter of next year.
