Galaxy Digital and Coinbase Invest $25 Million in Terra Stablecoin Ecosystem

Terraform Labs, the developer of the Terra stablecoin, has raised $25 million to expand the asset’s use in the DeFi sector.

\n

\n

We’re thrilled to welcome investors old and new to the Terra vision. We look forward to what the future holds, and invite the crypto community to join in building on the Terra blockchain to make savings, payments, and investing simpler & more accessible.https://t.co/KoqATixfwz

\n

— Terra 🌍 powered by Luna 🌕 (@terra_money) January 26, 2021

\n

\n

Investors in the round included Galaxy Digital, Coinbase Ventures, Pantera Capital, and others.

\n

\”The investments will be used to build protocols. Mirror — for synthetic stocks and Anchor — for savings, and other DeFi applications. The latter will become additional elements of the Terra algorithmic-stablecoin ecosystem,\” said Do Kwon, the company’s cofounder.

\n

The startup also plans to broaden interoperability with other blockchains.

\n

Terraform Labs is known for issuing stablecoins pegged to various fiat currencies for e-commerce. The startup is also behind Chai, a popular payments solution in Asia.

\n

\”Terra has gained popularity as a means of payment among 2 million Koreans and is actively growing in the DeFi sector,\” commented Simon Kim, CEO of Hashed.

\n

In 2018, with backing from Binance and Polychain, Terra launched TerraKRW pegged to the Korean won. To support it, the stablecoin relies on the issuance and burning of the LUNA token, which mitigates volatility.

\n

Terra is issued on the Tendermint protocol, forming the Cosmos ecosystem. This sets it apart from most other DeFi stablecoins, which are typically issued on Ethereum.

\n

According to Terraform, TerraKRW’s annual transaction volume reached the equivalent of $1.2 billion. The company earned $13 million in fees.

\n

Earlier, the Japanese internet company GMO received a license from the New York State Department of Financial Services to issue stablecoins pegged to the Japanese yen and the US dollar.

\n

Follow ForkLog news on Telegram: ForkLog FEED — the full stream of news, ForkLog — the most important news and polls.