KuCoin Joins $10M Funding Round of Chinese Yuan Stablecoin Issuer

According to the recent coverage circulated in the crypto community, KuCoin Ventures, an investment arm of KuCoin cryptocurrency exchange, one of the biggest exchanges across the world, has led a $10 million funding round for the issuer of CNHC, a stablecoin linked to the value of the offshore yuan, CNHC Group.

The offshore yuan, abbreviated CNH to distinguish it from the onshore yuan of China CNY, is tied 1:1 to the CNH Coin (CNHC).

The funding round featured some notable industry investors, according to KuCoin Ventures, who made the announcement earlier today. Other investors included Circle Ventures, the investment division of Circle, the company that issues the USD Coin, as well as IDG Capital, a backer of KuCoin.

KuCoin to Shift HQ to Hong Kong

KuCoin’s chief investment officer and head of KuCoin Ventures, Justin Chou stated that “this investment in CNHC is part of KuCoin Ventures’ broader strategy of investing in the Web3 infrastructure in the APAC region,” while revealing that the company is shifting its headquarters to Hong Kong.  

“Hong Kong has a well-established traditional finance ecosystem. With the regulation and new policy for next-generation digital assets, Hong Kong has a real opportunity at becoming the new crypto center of the world.”

According to Chou, the investment in CNHC follows KuCoin Ventures’ aim of supporting Web3 infrastructure throughout the Asia-Pacific region.

With new legislation and policies for digital assets, Hong Kong, which already has a strong traditional finance environment, has a “real opportunity at becoming the new crypto center of the world,” according to Chou.

In early 2022, KuCoin Ventures also invested $10 million in Conflux, a blockchain project in China that supports cross-border, multi-chain collaboration. 

Organizations like Circle Ventures have already supported the crypto exchange in an effort to go beyond centralized trading services and concentrate on Web3 technology. As previously reported by TheCoinRise, the company was valued at $10 billion when the crypto exchange revealed on May 10 last year that it had raised a $150 million pre-Series B financing round.