KuCoin Ventures, the venture arm of China-focused (but Seychelles-registered) cryptocurrency exchange KuCoin, is pegged to the value of the offshore renminbi (CNH). As the issuer of CNH Coin (CNHC), a stablecoin that has been around for a long time, we have raised $10 million (approximately 1.335 billion yen).
CNHC is pegged one-to-one with the offshore renminbi, and its abbreviation is CNH to distinguish it from China’s onshore renminbi (CNY). CNH’s reserves are held in a Hong Kong depository.
“This investment in CNHC follows Kucoin Ventures’ broader strategy to invest in Web3 infrastructure in the APAC region,” said Justin Chou, Kucoin’s chief investment officer and head of Kucoin Ventures, in a statement. It’s part of the.” “Hong Kong has a well-established traditional financial ecosystem. With regulation and new policies on next-generation crypto assets, Hong Kong has the opportunity to become the new global crypto capital.”
CNHC is issued on both Ethereum and Conflux. According to on-chain data, Ethereum has 23 token holders and 102 transfers, while Conflux has 606 holders and 1,487 transfers.
Conflux co-founder Fan Long said Conflux gets most of the volume here because of Conflux’s “regulatory compliance” in China.
“CNHC’s significance lies in its ability to connect the traditional financial system with the emerging Web3 landscape, especially in the face of increased regulation in the United States,” Ron said in a note to CoinDesk. “CNHC presents a practical option for businesses and users seeking compliance options beyond the US-centric regulatory framework.”
To be a competitor to the US dollar
Many stablecoins are overwhelmingly linked to the US dollar. There are stablecoins based on the euro, British pound, or other national currencies such as the Australian dollar, Canadian dollar, and Singapore dollar, but there are US dollar-pegged stablecoins such as Tether (USDT) and USD coin (USDC). It is far from the issuance amount of table coins.
It can be said that this has strengthened the hegemony of the US dollar. A CoinDesk columnist argues that having the next frontier in finance denominated in dollars is generally a good thing, as it extends American rulemaking to Ethereum.
But at the same time, not everyone wants to follow American rules. Especially if you have no ties to America. U.S. regulators are also hesitant to allow cryptocurrencies full and unfettered access to the U.S. banking system until strict federal oversight is established.
The markets themselves don’t want the risk of concentration on the US that this poses. USDC fell off the peg for a few days during the crypto-banking crisis and only recently regained it, but smart money (institutional investors and large traders) is skeptical.
Arthur Hayes, co-founder of exchange BitMEX, sees the Bitcoin-backed algorithmic stablecoin NakaDollar as the answer to all this, but last year’s Terra The market may be skeptical of the concept after the bankruptcy of .
CNH has a successful use case in the Chinese offshore bond market and is certainly built for it. But cryptoassets are something else entirely, so it’s not without its skeptics.
Alex Liu, CEO of Taipei-based Maicoin, said in a recent interview with CoinDesk that the yuan won’t fare well because it’s too tightly controlled, either on- or offshore.
“I think the only challenger to the US dollar is the renminbi. But not through cryptoassets, not through China’s central bank digital currency,” he said, noting that the real focus is on oil traded in renminbi-denominated contracts. claimed to be. “Most trade between Russia and China is de-dollarized.”
｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Original: KuCoin Has Closed a $10M Funding Round Into CNHC. But Is the Offshore Yuan Right for a Stablecoin?