## Sovryn and Babelfish Announce Merger to Create Bitcoin-Native Stablecoin Powerhouse
Community Call #29 was one of the most significant in the project’s history, announcing the groundbreaking **merger of Sovryn and the Babelfish protocol**. This strategic union is designed to combine the strengths of both projects to accelerate the development and adoption of a suite of decentralized stablecoins on the Bitcoin network.
### Why Merge?
Sovryn had the Zero protocol for minting a BTC-backed stablecoin (DLLR), while Babelfish specialized in aggregating and creating a fungible meta-stablecoin (XUSD) from other stablecoins bridged to the Rootstock network. The merger eliminates redundancy and combines expertise, creating a single, focused team with a comprehensive strategy.
The combined entity can now offer a full spectrum of stablecoin solutions:
* **A native, over-collateralized stablecoin** (Zero’s DLLR).
* **A fungible asset from bridged stablecoins** (Babelfish’s XUSD).
* A future path to a **decentralized, algorithmically-pegged stablecoin**.
### The Vision: A Unified Stablecoin Ecosystem
The long-term vision is to create a seamless user experience where users can easily swap between different types of stablecoins, with the system intelligently routing liquidity. The merger allows for a much more capital-efficient system, where the collateral and liquidity from both protocols can be used to strengthen the peg and deepen the utility of all Sovryn-native stable assets.
### What it Means for Token Holders
The merger involved a token swap, with FISH token holders receiving SOV tokens, fully aligning all stakeholders under a single governance token. This consolidates the community and ensures that all efforts are directed towards the success of the unified Sovryn protocol.
This merger is a bold, strategic move that positions Sovryn to become the undisputed leader and central hub for all stablecoin activity on Bitcoin.