Yala Raises $8M in Oversubscribed Seed Round to Drive Bitcoin Liquidity

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• Yala has raised $8 million in an oversubscribed seed round to expand its liquidity protocol and stablecoin operations for Bitcoin.
• The funding, co-led by Polychain Capital and Ethereal Ventures, will help Yala drive Bitcoin liquidity across multi-chain DeFi ecosystems.

Bitcoin-focused liquidity protocol and stablecoin issuer, Yala has announced the completion of its seed funding round, which was 3x oversubscribed. The round raised $8 million, co-led by Polychain Capital and Ethereal Ventures. Other prominent investors participating in the round included Galaxy Vision Hill, Amber Group, and HashKey Capital. The funds will support Yala’s engineering, growth, and security teams as the company prepares for its mainnet launch.

Yala’s mission is to address the liquidity gap in the Bitcoin ecosystem by building a multi-chain platform that combines stablecoin issuance with cross-chain deployments. The company’s modular architecture is designed to work across both EVM-compatible platforms, such as Ethereum, and non-EVM platforms like Solana. This setup aims to enhance Bitcoin composability within decentralized finance (DeFi) ecosystems.

“Yala is revolutionizing Bitcoin’s role in decentralized finance,” said Vicky Fu, Yala Co-founder and CTO. “By issuing Bitcoin-backed stablecoins and creating programmable cross-chain modules, we’re not just enhancing liquidity, but we’re building a bridge that connects Bitcoin to the wider DeFi ecosystem, unlocking unprecedented opportunities for innovation and growth.”

Yala’s protocol will include several key components: an overcollateralized stablecoin, MetaMint (which allows users to mint stablecoins directly from Bitcoin), and an insurance derivatives service. These features are intended to strengthen Bitcoin’s presence within DeFi while ensuring stability and security.

The company’s roadmap outlines several upcoming milestones, including the release of its testnet next week and further developments leading to the mainnet launch. With support from major industry investors, Yala aims to create a connected multi-chain ecosystem for Bitcoin liquidity, fostering innovation across various DeFi platforms.

Harshajit Sarmah

Harshajit Sarmah is the founder of Crypto India Magazine. An AI and decentralization enthusiast, Harshajit started the media outlet in 2024 after ghostwriting for big-name publications. The name of the company was actually a cheeky SEO gamble—funny how that stuck and became an identity. Today, Crypto India Magazine thrives with a tight-knit community of Web3 & AI entrepreneurs, startup enthusiasts, and even angels and VCs.