Galoy Launches BTC-Backed Synthetic USD, Hedging Volatility Surprises in Bitcoin

On Wednesday, Galoy, a California-based payment solutions platform that offers lightning as a retail payment system, announced the launch of Stablesats, a Bitcoin-backed synthetic U.S. dollar product designed to provide safe haven from the volatility of Bitcoin to crypto users.

Stablesats is different from other stablecoins such as Tether (USDT) and USD Coin (USDC). It is a derivatives instrument that generates a synthetic dollar backed by Bitcoin and tied to the U.S. dollar.

Galoy introduced Stablesats to the market to enable anyone to hedge against Bitcoin’s daily volatility – to fulfil the needs of crypto users, especially those in emerging markets like developing countries.

Stablesats, which provides people with access to a U.S. dollar account on their lightning wallet, aims to bolster regular payments by hedging users from the short-term exchange rate fluctuations between Bitcoin and the U.S. dollar.

Although Bitcoin is the better currency useful in daily transactions, some users see value in saving funds in Bitcoin and spending in the U.S. dollar. Stablesats enables users to do that all on Bitcoin.

Galoy CEO Nicolas Burtey talked about the development: “Bitcoin has brought digital transactions to previously unbanked communities across Latin America, Africa, and beyond. However, its volatility makes managing financial obligations difficult. With Stablesats-enabled Lightning wallets, users can send from, receive to, and hold money in a [U.S. dollar] account in addition to their default BTC account. While the dollar value of their BTC account fluctuates, $1 in their USD account remains $1 regardless of the bitcoin exchange rate.”

Apart from launching Stablesats, Galoy also announced that it has raised $4 million in a funding round led by Hivemind Ventures. Other investors such as Valor Equity Partners, Timechain, El Zonte Capital, Kingsway Capital, Trammell Venture Partners and AlphaPoint, also participated in the funding round.

Galoy said it plans to use the fresh funding to develop its core further GaloyMoney Bitcoin banking platform – a multipurpose application programming Interface (API) and an enterprise-ready Lightning Network gateway – intended to allow businesses and firms easy access to Lightning payments.

Addressing the Global Challenge of Financial Inclusion

Galoy is the US-based firm behind the open-source banking platform that supports El Salvador’s Bitcoin Beach Wallet.

In October 2020, Galoy created the Bitcoin Beach wallet in El Zonte, a tiny town in El Salvador, to support the local economy there through trading Bitcoin cryptocurrency in the local town. More than 6,000 users in the town currently use the crypto wallet to trade Bitcoin.

Bitcoin Beach wallet differs from El Salvador’s state-backed wallet Chivo, which was launched in September 2021 after the local law approved Bitcoin as legal tender in the country.

However, just like Chivo wallet, the Bitcoin Beach wallet is meant to empower local people, widen the financial system to include those who have been excluded, and increase economic opportunity around the region.

In December 2021, Galoy raised a $3 million funding round to expand its operations and help bring its Bitcoin banking platform to more communities, businesses, and governments.

Image source: Shutterstock


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Bitcoin And Lightning Network Conference To Be Hosted In El Salvador

Adopting Bitcoin — A Lightning Summit in El Salvador, hosted by Galoy, will be held in San Salvador and El Zonte from November 16 to 18, 2021.

In San Salvador and El Zonte, the three-day Bitcoin and Lightning conference, Adopting Bitcoin — A Lightning Summit in El Salvador, is set to be hosted this November. This conference will be presented by Galoy, and the aim of the conference is to help cultivate and strengthen Bitcoin adoption in the country. The team has stated that this event is not for profit and that 100% of the proceeds will be going towards Lightning Network development.

The conference will feature an impressive list of speakers such as The Human Rights Foundations’ Chief Strategy Officer Alex Gladstein, podcaster and incoming managing director of Swan Bitcoin International Stephan Livera, and the advisor to the President of Colombia Jehudi Castro Sierra, who has made extremely bullish comments on Bitcoin in the past.

The event will also feature educational tracks, demos and hands on workshops available in both English and Spanish.

Day one of the conference will feature a Lightning 101 workshop, a Tech/developer track (research/tech, for developers), and an Economic Track. The second day will focus on the same exact topics as day one, but day three will offer an immersive Bitcoin cultural excursion. On this day attendees will get the opportunity to meet the locals in El Zonte who started the famous Bitcoin Beach. The final event of the conference will be a party celebrating the activation of Taproot. (You can read more about Taproot activation here.)

El Salvador has attracted the attention of many all over the world with many Bitcoiners even visiting El Zonte to see Bitcoin Beach in person. The nation’s adoption of Bitcoin has brought a little confusion about the role of Bitcoin and how to use it. . This conference seems to be the perfect place for El Salvadorans to attend and learn about all the ways they can use Bitcoin and take advantage of the benefits it can provide them.

Disclosure: Bitcoin Magazine is proud to be a media sponsor for this event!


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The 411 On “Adopting Bitcoin,” A Lightning Network Conference in El Salvador

Perfect timing and place for a Lightning Network Conference. In less than a week, Bitcoin will be legal tender in El Salvador. The Lightning Network was instrumental for this to happen. The real-life case study for the Lightning Network is El Zonte AKA Bitcoin Beach. And in Mid-November, all of those factors will collide in an event aptly titled “Adopting Bitcoin.”

Related Reading | How Big Is Bitcoin’s Lightning Network? The Answer Will Surprise You

This Lightning Network conference comes with a call-to-action as its unofficial slogan, “Unite, focus, collab!” And, by the looks of Adopting Bitcoin’s official Twitter, the tribe responded to the call and will attend en masse. 

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What Characteristics Does This Lightning Network Conference Have?

According to “Adopting Bitcoin‘s” website, their purpose:

“… is bringing together the Bitcoin and Lightning community in San Salvador and El Zonte to create connections and foster the future of money and payments in the Central American republic.”

The Lightning Network Conference has the following characteristics:

  • The team behind the Bitcoin Beach Wallet, Galoy, produced the conference. 
  • “Adopting Bitcoin” is a not-for-profit event.
  • The organizers will donate 100% to support Lightning Network development.
  • The Lightning Network conference will be both in English and in Spanish. 
  • “Adopting Bitcoin” will be live-streamed.
  • They’ll dedicate Tuesday and Wednesday to hard-core conferencing.
  • Thursday they’ll finish the peregrination by visiting the place that started it all, El Zonte. “We will have an organized Bitcoin Bazaar 10a-4p…. with kiosks, stands and food stalls anchored at / near Hope House,” said Galoy’s Co-Founder.
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  • The Lightning Network conference is for “early adopters only.” Tickets can only be purchased with bitcoin over the Lightning Network.
  • “Adopting Bitcoin” is for “developers, businesses and general enthusiasts to network and form in-person connections.” 

“Adopting Bitcoin’s” Line Up

Tuesday and Wednesday, the party is in San Salvador’s Sheraton Presidente. Both days contain “Lightning 101” workshops. Among the star lecturers are: 

Alex Gladstein, Chief Strategy Officer at the Human Rights Foundation; podcaster extraordinaire Stephan Livera; Bitnob’s Bernard Parah, from Nigeria, one of the protagonists of this historic transaction; “Bitcoin En Español’s” host Camila Campton; Mónica Taher, Tech & Econ Intl Affairs: Gov of El Salvador; Bitcoin Beach’s Mike Peterson, and Paxful’s Ray Youssef.

Full line-up in the Lightning Network Conference ‘s website.

On Thursday 18, the party moves to El Zonte and ends with a literal Taproot Activation Party in El Tunco. For a video tour of both towns, check this mini-documentary out.

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About Galoy, Organizers Of The Lightning Network Conference

According to their official website, “Galoy offers easy to use Bitcoin ‘Banking-as-a-Service’ (BaaS) products.” They are responsible for the self-referential official wallet for the Bitcoin Beach project. “In October 2020, we launched our branded “Bitcoin Beach” Lightning Wallet in El Zonte.” Galoy describes itself as:

“… a B2B company, serving organizations that embrace Bitcoin as money. We build on the Bitcoin Protocol and the Layer 2 Lightning Network, utilizing the tools created by the team at Lightning Labs.”

Related Reading | Are The Lightning Network’s Almost-Free Transactions The Killer App BTC Needed?

And now, they’re contributing to the Bitcoin ecosystem with this not-for-profit Lightning Network Conference in El Salvador. One that requires that you actually use the novel network to purchase the coveted ticket. And donates all proceeds to Lightning development. 


Featured Image: Adopting Bitcoin's logo | Charts by TradingView


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