Angle Labs, a startup working on a euro-backed stablecoin, announced on Tuesday that it has completed its $5 million seed round led by 116z. The company plans to launch its mainnet by the end of October.
Many investors participated in the round including Fabric VC, Wintermute, Divergence Ventures, Global Founders Capital, Alven, Julien Bouteloup, and Frédéric Montagnon.
Angle Labs has described its euro-backed stablecoin protocol as an “over-collateralized and capital-efficient decentralized stablecoin protocol” that would allow anyone to issue any type of stablecoin.
Angle Labs core contributor Pablo Veyrat pointed out that the euro lost 10% in value against the dollar in 2020 and as a result. European users would need to make at least a 10% return on their USD-pegged stablecoins to make a profit in euros, the company noted in its press release.
The company currently aims to launch a Euro-backed stablecoin before targeting several fiat currencies including the Swiss Franc, the British Pound, the Japanese Yen, and the Korean Won.
After gaining momentum, it might later issue stablecoins pegged to non-fiat underlying like indexes or baskets of currencies.
Angle Labs would also release its governance token ANGLE which will be distributed through the joint curve and pledge contracts released later after the release.