YZi Labs Leads $8M Strategic Funding for Stablecoin Developer, Standard Money

Quick take:

• The fundraising also attracted participation from Gate.io, Crypto.com, and Animoca Brands.
• Standard Money’s flagship product is the yield-seeking algorithmic USDsd stablecoin built on the BNB Chain.
• Algorithmic stablecoins attempt to maintain value relative to the asset they are pegged to, like the USD, by using automated algorithms and smart contracts to manage the circulating supply.

Standard Money, the BNB Chain-based stablecoin provider, has raised $8 million in strategic funding led by YZi Labs, the digital asset-focused home office linked to Binance founder Changpeng Zhao.

The fundraising also attracted popular crypto investment firms Gate Ventures, Crypto.com Capital, Ceffu, and Animoca Brands, among others.

The company plans to use the fresh capital to support its mainnet rollout, whilst also expanding its liquidity partnerships and global operations, CoinDesk reported.

Standard Money is renowned for its yield-seeking algorithmic stablecoin, the USDsd. Algorithmic stablecoins attempt to maintain value relative to the asset they are pegged to, like the USDT in this case, by using automated algorithms and smart contracts to manage the circulating supply.

With Standard Money’s funding attracting funding from some of the biggest crypto-focused venture firms, it may be a signal that algorithmic stablecoins may be making a comeback. 

The story of one of the industry’s most popular algorithmic stablecoins, Terra Luna’s TerraUSD (UST) stablecoin, did not end well, with the stablecoin collapsing after depegging from its base currency in May 2022. 

It also comes just weeks after YZi Labs, which incubated Standard Money, launched a $1 billion fund to support developers building on the BNB Chain. 

Recently, stablecoins have attracted significant media buzz, with interest rising following the signing into law of the GENIUS Act in July, which provides clarity for regulating digital assets pegged to traditional assets and guidelines for traditional banks looking to integrate crypto into their systems.

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