Standard Money, developer of the BNB chain-based stablecoin USDsd, has raised $8 million from a number of leading crypto investors.
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 Tether’s USDT, the world’s largest stablecoin by market capitalization.
The funds raised will support Standard Money’s mainnet deployment and expand its liquidity partnerships and global operations, according to Monday’s announcement.
Algorithmic stablecoins are tokens designed to maintain a peg to the asset in question using smart contracts and economic incentives to manage circulating supply.
For many observers, this type of token evokes memories of the collapse of the Terra-Luna ecosystem in 2022, caused by the algorithmic stablecoin TerraUSD (UST) token losing its peg to the US dollar.
The recent surge in the stablecoin sector may have led some investors and crypto companies to reconsider the concept of algorithmic stablecoins, according to Standard Money’s support from such a prominent digital asset heavyweight in this latest funding round.
