KuCoin is moving to support new stablecoin initiatives by backing a Chinese yuan-pegged stablecoin issuer.
KuCoin Ventures has led a $10 million investment in stablecoin issuer and blockchain-based payment service provider CNHC.
Announcing the news on March 16, KuCoin Ventures said that the funding round included some prominent industry investors, including KuCoin’s investor IDG Capital and Circle Ventures, the investment arm of the USD Coin issuer, Circle.
KuCoin chief investment officer and KuCoin Ventures lead Justin Chou told Cointelegraph that the new investment in CNHC is the first time KuCoin Ventures has invested in a stablecoin-related project.
The investment into CNHC reflects KuCoin Ventures’ strategy of backing Web3 infrastructure in the Asia-Pacific region, Chou said. According to the announcement, KuCoin Ventures also invested $10 million in China’s blockchain project, Conflux, in early 2022. Chou noted that Hong Kong has a well-established traditional finance ecosystem and a “real opportunity at becoming the new crypto centre of the world” with new regulations and policies for digital assets.
CNHC co-founder Joy Cham stated that the platform launched its offshore yuan-pegged stablecoin, CNHC, about two years ago. He described the stablecoin as “more akin to a house settlement tool,” referring to CNHC’s limited exposure.
