The Chinese-based crypto exchange KuCoin has announced the completion of a funding round that generated $10 million. The March 15 report from the KuCoin team revealed that the funds would be utilized to support the issuance of a unique stablecoin CNHC.
The new stablecoin will be pegged to the Chinese offshore yuan (CNH). Unlike the onshore yuan (CNY), the reserves for the CNH are managed and controlled by the Hong Kong financial watchdogs.
Why is KuCoin Interested in Web3?
A statement from the KuCoin chief executive Justin Chuo revealed that the completed funding round aims at supporting the growth of Web3 projects in the Asian-Pacific region. Chuo mentioned that Hong Kong had been a burgeoning financial center in the APAC region, providing investors endless opportunities to tap into the centralized and decentralized finance world.
He argued that Hong Kong demonstrates the measurable potential to become a global crypto hub. Chuo stated that the crypto-friendly regulations in Hong Kong would lead to the establishment of a healthy crypto center in the region.
Meanwhile, the Hong Kong crypto-native community has been on the rise, necessitating Ethereum and Conflux to facilitate the buying and selling of CNHC.
Adoption of CNHC in China
A recent survey from On-chain data demonstrates the Ethereum team have completed 102 CNHC transactions, and the number of digital asset holders has reached 23.
Correspondingly, the Chinese-based crypto firm Conflux has over 606 CNHC holders, and the team has executed over 1487 transactions.
A review of the report issued by the team behind CNHC stated that the stablecoin aims at bridging the gap between traditional finance and decentralized finance. The CNHC is a digital asset that enables the user to comply with the authorities when engaging in crypto-related trades.
The stablecoin offers the transfer options to various fiat currencies, including the US dollar, Pound, and Euro. Notably, KuCoin believes that the $10 million generated from the funding round will positively impact the CNHC token reading.
As per data captured by CoinMarketCap, CNHC prices have dipped by 1.48% to trade at $0.1438 in the last 24 hours. CNHC tested its lowest at $ $0.1427 before its regained strength to settle at its highest at $0.1478 in a day.