Transparency: The Foundation of a Sound Financial System

The Problem with Traditional Finance: Opacity and Corruption

The traditional financial system is no stranger to corruption. For centuries, they have operated in a way that benefits the few, leaving the majority in the dark. Opaque accounting, hidden risks, and lack of oversight are only some of the issues that have plagued global finance.

Take, for example, the infamous 2008 financial crisis. Legacy institutions misled the public, obscured the risks, and ultimately leveraged non-transparent financial products that led to systemic collapse. After the dust settled, those at the top of the financial food chain retained dominance. Centralized finance failed on a monumental scale, yet it continues to dominate globally.

At Hermetica, we believe that financial institutions should be built on accountability. We operate with full transparency, ensuring that every user has access to all relevant data. Our approach goes beyond the traditional financial model; we’ve created a system where transparency is a core principle. Every transaction, every USDh mint, and every backing asset is fully visible in real-time. Our system eliminates the distrust that plagues traditional finance.

The Transparency Dashboard: A New Era of Trust

In Hermetica 2.0, trust is built directly on the infrastructure of our Bitcoin-native financial products. The Transparency Dashboard gives users the ability to view real-time data on the assets backing USDh like:

• USDh collateralization levels

• Active positions

• Custodian distribution

• APY data

We work with our institution-grade custodians, Copper and Ceffu, to publish monthly attestations of the Bitcoin reserves backing USDh. Third-party attestations provide another data point to verify every USDh is fully backed by Bitcoin. You can view the attestations here.

The Bitcoin network is our foundation, and its inherent transparency is embedded in everything we do.