Galoy, the parent company of El Salvador’s Bitcoin Beach Wallet, has introduced its new service called Stablesats. Additionally, GaloyMoney said it has completed a $4 million capital increase to enable further development of its bitcoin banking platform.
Alternative to Stablecoins: Stablesats by Galoy
Stablesats, which can be used with Lightning wallets, allow users to transact without being affected by daily volatility. Leveraging the existing stablecoin infrastructure, Stablesats uses derivative contracts to create a Bitcoin-backed synthetic dollar-pegged to the dollar. It responds to the short-term exchange rate volatility of people who use Bitcoin for daily transactions by enabling dollar-equivalent USD accounts in their Lightning wallets.
The company aims to allow the transfer of dollars via Bitcoin (BTC) to resolve the risk of volatility, which is currently one of the biggest obstacles to Bitcoin growth as a tool for temporary payments.
Galoy CEO Nicolay Burtey made the following statements in his press release.
“Bitcoin has brought digital transactions to previously unbanked communities in Latin America, Africa and beyond. Volatility makes it difficult to manage financial transactions. With Stablesats-enabled Lightning wallets, users will have a US dollar account in addition to their default BTC account. Money can be sent from, withdrawn from, or held in this account. Although the currency value of BTC accounts fluctuates, $1 in USD account remains $1 regardless of the Bitcoin exchange rate.”
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