Investment segment of KuCoin, a cryptocurrency exchange, is expected to back new stablecoin initiatives through supporting a Chinese yuan-pegged stablecoin issuer, CNHC, through a $10 million funding, as stated by Cointelegraph.
According to Cointelegraph, on March 16, 2023, KuCoin Ventures stated that the funding round saw participation from industry investors, including KuCoin’s investor IDG Capital and Circle Ventures, investment arm of USD Coin issuer, Circle.
“To ensure the stability of the financial market, stablecoin designers need to find a balance between overcollateralization and efficiency. We are happy to see more algorithm-based stablecoins but they need to prove their resiliency,” Justin Chou, lead, KuCoin Ventures, said.
Based on information by Cointelegraph, KuCoin Ventures also made a $10 million investment into China’s blockchain project, Conflux, during 2022’s beginning. Chou highlighted Hong Kong to be a traditional finance ecosystem and a “real opportunity at becoming the new crypto center of the world,” based on new regulations and policies around digital assets.
“Bitcoin was born after ‘Lehman Brothers’ yet still grew to mass adoption with about 420 million global users. The recent shutdowns of financial institutions may be the opportunity for crypto to reach mass adoption,” Johnny Lyu, CEO, KuCoin, said.
Moreover, Cointelegraph noted that KuCoin is at the receiving end of a lawsuit in United States over violations for providing crypto facilities in New York.
(With insights from Cointelegraph)