KuCoin Ventures has raised $10 million in funding for the Offshore yuan-pegged stablecoin CNHC.
Sharing the news about the funding round on March 16, KuCoin Ventures stated that IDG Capital and USD Coin (USDC) issuer Circle Ventures also participated in the funding round. KuCoin Chief Investment Officer Justin Chou told Cointelegraph that the new investment in CNHC is KuCoin Ventures’ first investment in a stablecoin-related project. Chou further mentioned that it is likely to see more fiat-backed stablecoins in the near future.
Chou: This Investment Supports Our Web3 Strategy
Chou added that in order to stabilize the financial market, stablecoin creators need to find a balance between over-collateralization and efficiency.
According to Chou, this latest investment by KuCoin Ventures reflects the platform’s strategy to support Web3 infrastructure in the Asia-Pacific region.
KuCoin Ventures invested $10 million in China-based blockchain project Conflux in early 2022.
CHNC co-founder Joy Cham also gave some comments to Cointelegraph. Stating that they launched CHNC two years ago, Cham said that their company was somewhat affected by the recent banking crises.
Commenting on the banking crises, KuCoin CEO Johnny Lyu said that KuCoin was not affected by the problems because it did not cooperate with SVB, Silvergate and Signature Bank. Lyu continued: “However, the entire market is exposed to USDC and USDT in some way. The removal of crypto from traditional banking could have long-lasting effects on the industry.
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