Stablecoin infrastructure startup WSPN has secured $30 million in a seed round to boost its stablecoin adoption mission. The Worldwide Stablecoin Payment Network, also known as WSPN, has attracted significant investment to double down on its “Stablecoin 2.0” approach. In an announcement on August 16, the firm stated that the funding round was led by Foresight Venture and Folius Ventures, with participation from Hash Global, Generative Ventures, Yunqi Partners, and RedPoint China, among others.

Founded by former employees of Visa and Paxos, WSPN has gained backing from over 30 cryptocurrency exchanges, more than 10 wallets, and a range of payment institutions and market makers. The startup, based in Singapore, also offers its own stablecoin products like WUSD and WEUR. These stablecoins are supported by cash, cash equivalents, and short-term treasury bills.

Governance Token to Rule Stablecoins

WSPN’s “Stablecoin 2.0” approach focuses on the introduction of a governance token. This token allows users to share in the ecosystem’s long-term value and influence its development trajectory. The firm plans to implement on-chain voting, enabling token holders to participate in key decision-making processes. This ensures transparency and community-driven governance.

WSPN CEO Raymond Yuan commented that the “substantial capital injection” will accelerate the startup’s efforts to develop the next generation of stablecoin infrastructure.

The funding comes at a time of uncertainty for the stablecoin market.

In mid-July, Tether CEO Paolo Ardoino expressed concerns about Europe’s MiCA regulations, which have stringent cash reserve requirements that could create systemic risks for banks. Despite the rush among issuers to comply with these new regulations, blockchain analytics firm Kaiko notes that only one stablecoin provider, Circle, has benefited so far. Currently, there are no indications that Tether intends to register in the EU under the new regulatory framework.

For more updates and insights into the cryptocurrency world, stay tuned to Global Crypto News.

Post Views: 0