• KuCoin Ventures has led a $10 million investment in stablecoin issuer and blockchain-based payment service provider CNHC.
• The investment round included major industry investors, such as KuCoin’s investor IDG Capital and Circle Ventures.
• CNHC launched its offshore yuan-pegged stablecoin, CNHC, about two years ago.
Leading $10M Investment for Chinese Yuan Stablecoin Issuer
KuCoin Ventures, the investment arm of major cryptocurrency exchange KuCoin, is moving to support new stablecoin initiatives by backing a Chinese yuan-pegged stablecoin issuer. They have led a $10 million investment in stablecoin issuer and blockchain-based payment service provider CNHC that includes some prominent industry investors such as KuCoin’s investor IDG Capital and Circle Ventures.
CNHC Stablecoin Launch
CNHC co-founder Joy Cham announced that the platform launched its offshore yuan-pegged stablecoin, CNHC, about two years ago. It is currently only listed on one centralized exchange, TruBit Pro but will be listed on more centralized and decentralized exchanges soon according to Cham.
Balance Between Overcollateralization & Efficiency
Justin Chou from KuCoin made it clear that the world is likely to see more real-world asset-backed stablecoins in the near future. To ensure stability of the financial market, stability coin designers need to find a balance between overcollateralization and efficiency which he believes can be achieved with algorithm based coins.
Opportunity in Hong Kong Crypto Center
Chou also expressed his belief that Hong Kong has an opportunity at becoming the new crypto center of the world with new regulations and policies for digital assets making it easier for investors to gain access to Web3 infrastructure investments like this one in CNCHC.
This strategic move from KuCoin Ventures is part of their wider strategy of investing into Web3 infrastructure projects throughout Asia Pacific region with their recent investments into China’s Conflux project earlier this year being another example of this trend.