Chinese yuan-pegged stablecoin is backed by KuCoin and Circle in a $10M investment
Join Our Telegram channel to stay up to date on breaking news coverage Circle Ventures, the venture division of USDC issuer Circle, has invested in CNHC, an offshore stablecoin project backed by the Chinese yuan. The partnership’s timing and strategic importance are difficult to ignore. Stablecoins have developed from a niche business into a $130 billion industry in just a few years. These digital currency are intended to provide a less volatile means of trading than, say, Bitcoin and Ethereum because they are often backed by conventional assets like the U.S. dollar. As the stablecoin market expands, a hierarchy emerges that is similar to the old, USD-centric financial system. About 99% of stablecoin s in circulation today are pegged to the US dollar, and CNHC is one of the few initiatives to challenge the dominance of the dollar in the blockchain industry. Since March, Circle has been having problems. It was first impacted by the closure of Silvergate and then by the c...