Bloomberg: Babel Finance to issue a stablecoin to settle debts

The crypto-financial-services provider Babel Finance plans to issue a stablecoin to settle debts with creditors. Bloomberg reports this.

According to the publication, in the restructuring plan co-founder Yang Zhou presented the DeFi project Babel Recovery Coins. It allegedly envisages two assets—the stablecoin HOPE and the Light Token.

The first is 50% backed by Bitcoin and Ethereum and is expected to reach parity with the dollar through arbitrage trades.

According to Bloomberg, the company plans to file for creditor protection in the High Court of Singapore, seeking a standstill on further action for up to six months.

In May 2022, Babel Finance raised $80 million at a $2 billion valuation.

A month later the company halted withdrawals from its own products due to a lack of liquidity.

Subsequently, Babel Finance representatives denied reports of insolvency and spoke of reaching “preliminary agreements” on paying part of the debts.

In July, it became known that the crypto lender lost $280 million in trading client funds.