KuCoin Leads its First Investment in Stablecoin Project

KuCoin Venture has variably participated in investment rounds led by startup and seed crypto companies. The investment venture of the KuCoin crypto exchange reportedly invested $10 Million in a Chinese yuan-pegged stablecoin coin.

CNHC is a Chinese yuan-pegged stablecoin issuer that raised a $10 Million investment to make the issuance of stablecoin more convenient and easy. The funding round was led by Kucoin Venture, Circle Venture, and IDG Capital also participated.

While talking to a crypto media outlet, Justin Chou, the Chief Investment Officer and lead of KuCoin Ventures, said that investing in CNHC is the firm’s first investment in any stablecoin project.

Justin Chou notes that KuCoin always aims to develop a more robust and safer infrastructure for the financial system. According to Chou Soon, the world can see more real-world asset-backed stablecoins.

The CIO suggested that to ensure the stability of the financial market, stablecoin developers need to find and understand a balance between over-collateralization and efficiency. Many algorithms based on stablecoin in the market need to prove their resiliency.

Chou said KuCoin Ventures’ investment in CNHC is a strategy to back Web3 companies in Asia-Pacific Region. Earlier in 2022, Q1 KuCoin invested in a Chinese blockchain project Conflux.

Chou believes that Hong Kong has one of the well-developed traditional financial systems and has the environment to become a leading crypto hub in the coming few months. Most leading crypto companies are trying to register them under Hong Kong financial authorities to carry out their operations.

According to Crunchbase data, KuCoin has invested in more than 14 projects, including Halo Wallet, TwitterScan, Joyride, The Red Village, MetaOasisDAO,zCloak Network, and a few others.

According to data analytics of 2023, KuCoin has more than 20 Million active users and operates its business in more than 207 countries globally. CoinMarketCap suggests the 24-hour spot trading Volume of KuCoin is $930,761,202.79.

The Financial Reserve of KuCoin is composed of four major cryptocurrencies, which are USDT (30.27%), Bitcoin (14.47%), Ethereum (9.55%), and Shiba Inu (1.57%). The crypto exchange was established and officially launched in 2017.

The crypto exchange is easily accessible in Turkey, the United Kingdom, and Singapore. Still, it does not have a license to operate in the United States, although investors and traders in the USA can register their accounts on the platform.

Disclaimer

The views and opinions stated by the author, or any people named in this article, are for informational purposes only and do not establish financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.