Stablecoin infra USDX MONEY has raised $45 million in a funding round with a $275 million valuation. According to the announcement by the platform, the investors for this round included NGC, BAI Capital, Generative Ventures, UOB Venture Management, with portion of the investments made in the form of warrants.
The funding comes at a time when crypto VC funding and general financing has picked pace amid market optimism over the growth the growth of crypto.
Where Will The Money Be Used?
With USDX as its initial stablecoin product, usdx.money seeks to develop the next generation of stablecoin infrastructure. The USDX and sUSDX stablecoins will be used in a variety of contexts as USDX.money’s ecosystem continues to grow after the fundraising round.
Jeneration Capital and Dragonfly Capital are current backers of the project.
Crypto VC Funding Rises After Bleak Past
In recent years, it has been extremely challenging for cryptocurrency start-ups to raise capital. Following the fall of cryptocurrency companies, stock valuations, and token prices in 2022, they have had to deal with a lackluster demand from investors who are afraid of being burned again.
But now the situation seems to be changing. According to Galaxy Research, venture capitalists’ and other investors’ investments in cryptocurrency companies increased from $2.5 billion in the first quarter of this year to $3.2 billion in the second quarter, the largest sum for a three-month period since 2022.
The rise indicates that financial markets have gained the necessary trust in crypto firms, making the money flow into the sector.
A good example of this was when Rhodium Encore decided to fight bankruptcy via funding. In order to fund its Chapter 11 bankruptcy proceedings, the court approved a unique financing option for Rhodium Encore LLC, a bankrupt cryptocurrency mining company.
Mike Novogratz’s blockchain company, Galaxy Digital, offered Rhodium $300 million or 500 Bitcoin to pay for the bankruptcy proceedings. The interest rate on the dollar loan was kept at 14.5% annually, while the interest rate on the Bitcoin loan was at 9.5% annually, according to court documents.
At the current market exchange rate, Rhodium could pay back the Bitcoin loan in US dollars before to the loan’s maturity date with the lender’s consent.
Another good example of crypto-funding was the successful completion of a $5 million Series A fundraising round by Alliance Games.
A number of well-known venture capital firms, including Kyros Ventures, Coin98 Ventures, Dialectic, and The Spartan Group, made significant contributions to the investment round.