Standard Money, developer of the BNB Chain-based stablecoin USDsd, has raised $8 million from an array of crypto investment heavyweights.
The strategic investment round was led by Yzi Labs and included participation from Gate.io, Crypto.com, and Animoca Brands, according to an emailed announcement shared with CoinDesk on Monday.
USDsd is a yield-seeking algorithmic stablecoin based on the Tether’s USDT, the world’s largest stablecoin by market capitalization.
The funds raised will support Standard Money’s mainnet rollout and expand its liquidity partnerships and global operations, according to Monday’s announcement.
Algorithmic stablecoins are tokens designed to maintain their peg to the applicable asset using smart contracts and economic incentives in order to manage the circulating supply.
For many observers, this type of token evokes memories of the Terra-Luna ecosystem’s collapse in 2022, prompted by its algorithmic stablecoin TerraUSD (UST) token losing its peg to the U.S. dollar.
The recent proliferation of the stablecoin sector may have prompted some investors and crypto companies to revisit the concept of algorithmic stablecoins, as per Standard Money’s backing by such noted digital asset heavyweights in this funding round.