Asian blockchain startup Terra raises $32m to build ‘stablecoin’

A token representing Bitcoin virtual currency sits among cables and LED lighting inside a 'mining rig' computer in this arranged photograph in Budapest, Hungary. Photographer: Akos Stiller/Bloomberg

South Korea and Singapore-based blockchain startup, Terra, said it has raised $32 million in seed funding to build a new “price stable” cryptocurrency or “stablecoin”.

The lead investors in this financing round are Binance Labs, OKEx, Huobi Capital and Dunamu & Partners, which are also four of the six biggest cryptocurrency exchanges in the world. Other investors include blockchain-focused funds such as Polychain Capital, FBG Capital, Hashed, 1kx, Kenetic Capital, Arrington XRP Capital and TransLink Capital, the company said.

In an official statement, Terra said, it aims to link their stablecoin to their existing blockchain payment solution, which currently has the backing of Terra Alliance. (Terra Alliance is a 15-member network of e-commerce companies including Woowa Brothers, Qoo10, Carousell, Pomelo and TIKI.)

The company further said it hopes to add more partners as it expands.

Terra’s team is no stranger to ecommerce. Its co-founder, Daniel Shin was the founder of TMON, better known as Ticket Monster. TMON is a leading South Korean ecommerce platform boasting a total Gross Merchandise Volume (GMV) of almost $4 billion and 9 million customers annually. It has since been acquired by US ecommerce platform, Groupon.

“From experience, I know that faster, more secure transactions at a fraction of today’s fees could be a game-changer for many eCommerce platforms. We are excited to be working with great partners and look forward to beta-testing Terra’s payment system in Q4 of this year,” said Daniel Shin, the co-founder of the blockchain startup.

The company said it was aiming that its new cryptocurrency would address the needs for a stable digital currency that is immune to price fluctuations. It also hopes to evolve into an open platform for financial apps to build on Terra’s stability.

“While we see many stablecoins coming out, Terra’s journey is especially meaningful as they are designing one of the few price-stable protocols with existing, working, and strong go-to-market strategy and usage,” said Ella Zhang, Head of Binance Labs.

The block chain startup currently operates from South Korea and Singapore.