Grandshores Technology Group, a Hong Kong-based blockchain investment company, plans to raise $ 12.7 million through a digital token fund in an effort to finance a yen-supported cryptocurrency project.
Other stable coins in The Crypto Pot
Grandshores Technology was initially a contracting company pivotal to the blockchain industry after being acquired by SHIS, a company owned by the Singapore-based investor. , Yongjie Yao, who is also responsible for the Blockchain Global Xiongan innovation fund.
Yao has made a name for himself in the technology sector by being a founding member of the 10 billion yuan Hangzhou Grandshores Fund, supported by both the Hangzhou government and the famous Bitcoin investor, Li Xiaolai.
To obtain financing, the company will be intercepting qualified investors located outside of China to raise funds denominated in Tether, which is supported by USD. The funds will be used to launch a stable Japanese currency with the yen, which will work similar to Tether.
While talking about Grandshores new investment, Yao explained that the blockchain industry is on track to break the current financial system, and that there is significant potential for many small projects and underestimated.
Yao said that:
"Blockchain will become mainstream technology in the next three to five years." We are entering the next phase of blockchain evolution, a phase similar to the time when the computer operating system passed from MS -DOS [disk operating system] to MS-Windows. "
Yao also stated that the fund is currently working in the middle-tier Japanese bank to provide the means for a stable currency with the yen. He also expressed immense confidence in the demand for a stable currency with the yen, mentioning that the fund also wants to launch stable currencies denominated in the Hong Kong dollar and the Australian dollar.
The Rise of the Stable Coin
Stable currencies gained popularity, especially those denominated in the US dollar, due to perceived problems surrounding Tether, which is currently the stable currency most popular in the world.
Unlike their highly volatile counterparts, stable currencies provide a refuge for cryptocurrency investors, and are commonly used by cryptocurrency exchanges that would allow investors to trade against legal currencies without having to receive the appropriate licenses to allow to investors to trade against pairs of real cards.
Yao said that the demand for a stable currency with the yen comes from traders and cryptocurrency exchanges, since many exchanges offer the possibility to exchange only pairs of cryptocurrencies, such as Bitco in, Ethereum and Litecoin.
"We believe that traders and cryptocurrency exchanges will be potential buyers of these stablecoin," he said.
Although countries like Japan, Hong Kong and Australia do not have stable currencies denominated in their fiat-natural exchange pairs, the competition for stable currencies continues to grow in the United States, with competitors such as brothers Winklevoss and IBM who are all looking to provide stable coins that will be widely adopted as an alternative to Tether.