KuCoin, a digital currency exchange, has invested in the Chinese yuan-backed stablecoin issuer CNHC through its investment arm KuCoin Ventures.
The 10 million dollar grant is intended to reinforce the position of CNHC, a stablecoin issuer, and blockchain-based payment service provider, in the market. The backing for this growth investment round was provided by prominent investors such as KuCoin Ventures, IDG Capital, and the investment division of USDC creator Circle.
The CNHC, a stablecoin supported by off-shore Chinese yuan (CNH) at a rate of 1:1, is waiting on authorization from Hong Kong’s regulatory body. Its primary applications will be for money transfers, cross-border commercial settlements, and liquidity management, with the aim of satisfying crypto-enthusiasts with a preference for the renminbi.
It is expected that CNHC will offer protection in highly volatile market conditions, while also improving the risk and return metrics of crypto-investment portfolios.
