A company that is working on a pilot digital token programme being tested in Bermuda has raised more than $2 million in its latest funding drive.

Stablehouse is collaborating with the Bermuda Government on a pilot scheme, which involves a digital token that is equivalent to a Bermuda dollar. The programme is expected to provide initial feedback on the viability of using digital tokens in facilitating the purchase of essential products and services.

Based and regulated in Bermuda, Stablehouse is a payment and foreign exchange platform for stablecoins. Stablecoins are a class of cryptocurrencies that attempt to offer price stability and are backed by a reserve asset.

Stablehouse has secured $2.18 million of seed funding from investors, including Dragonfly Capital, a venture capital firm focused on crypto asset classes, and Liberty City Ventures, a technology-focused venture capital firm.

Philippe Bekhazi, CEO of Stablehouse, said: “Although Stablecoins are still in their early years, they are rapidly gaining prominence, especially as a reliable store of value and secure payment option.

“We are thrilled to have such a high calibre of investors on board and are honoured to have this level of support. We are fortunate to have backing from some of the most renowned and successful leaders in the space and are delighted to have access to their knowledge, expertise, and guidance as we progress the stablecoin market.”

Mr Bekhazi said the seed funding was “only the beginning of a bright future for Stablehouse” and it will commence its Series A fundraising in the first quarter of 2021.