Cryptocurrency giants KuCoin and Circle are joining forces to advance the businesses’ massive efforts to build out a yuan-pegged stablecoin. The two businesses have announced a $10M round to back the project.
Stablecoins are digital assets which are designed to keep the value of their trading pairs close to the intrinsic value of a particular currency such as the US dollar or even the Chinese Yuan. KuCoin’s proposed project focuses, first and foremost, on creating a yuan-pegged stablecoin, the world’s first.
Both businesses are keen on the potential for such a venture, as for some users and businesses, the stability of a yuan-pegged token could very well provide a much-needed bridge between the traditional financial services infrastructure of the East and the more volatile world of cryptocurrency.
For KuCoin, the ability to provide such a product would lead to a major uptick in the company’s trading volume, as the product could be used to facilitate easier payments in international trading and beyond. As a result, this would potentially increase the popularity and use of KuCoin’s platform in its homeland of China, and throughout the rest of the Asia-Pacific region.
Circle, too, is heavily invested in the project, as its own subsidiary Poloniex recently underwent a major overhaul with the purpose of keeping it in the market’s upper echelons. It’s no surprise that the company is looking further into expanding services to internationally-based customers as well, allowing them to take part in their trading operations.
KuCoin and Circle’s partnership is expected to yield significant benefits on both sides, with the potential for a yuan-pegged stablecoin presenting a broad range of opportunities for users worldwide. From international companies and traders looking to benefit from the common currency conversion between different countries, to everyday users looking to conduct payments based on a stablecoin, their joint venture has massive implications for the cryptocommunity.
It goes without saying that KuCoin and Circle’s joint venture is an incredibly ambitious one, but there is much reason to believe that their efforts will pay off. As they continue to move forward, it’s exciting to find out more about what their partnership will bring to the table, and it will be particularly interesting to see the level of success that their proposed yuan-pegged stablecoin will have in the international market.
Hey Subscribe to our newsletter for more articles like this directly to your email.