Multicurrency stablecoin protocol Bluejay Finance, located in Singapore, has raised US $2.9 million in a fundraising round from backers including Zee Prime Capital, C2 Ventures, and Stake Capital Group, among others.
The fintech company will utilize the capital to build its workforce and deploy stablecoins, concentrating on Asian stablecoins backed by regional currencies. According to a statement from the company, partners including financial firms and both centralized and decentralized exchanges, would distribute the stablecoins.
Bluejay CTO Raymond Yeh said the funds obtained were “against the headwind in this current market.” “We are going onto a full-on build mode in the coming months with our first stablecoin denominated in Singapore dollar launching in Q4 this year,” Yeh wrote in a LinkedIn post.
By offering stablecoins in several currencies, the fintech company hopes to reduce customers’ exposure to currency exchange risk and make it simpler for the underbanked to access funds and financial services.
“DeFi (decentralized finance) summer was the first wave of innovation, driven by yield farming. Despite the current state of the markets right now, we are incredibly bullish that the next cycle will be driven by sustainable, real use cases that solve a true need,” says Bluejay founder Sherry Jiang.
The financing comes in the wake of the recent collapse of the stablecoin TerraUSD, which destroyed $40 billion in investor capital, including most of the co-founder Do Kwon’s total worth. Because there was no liquidity in the crypto exchanges, the crash—precipitated by a sell-off of US $285 million in less than 24 hours—occurred.
