Funding Round Led by Major Crypto Players
Standard Money, the company behind the BNB Chain-based stablecoin USDsd, has secured $8 million in a strategic funding round. The investment was led by Yzi Labs and included participation from several major cryptocurrency exchanges and investment firms. Gate.io, Crypto.com, and Animoca Brands all joined the round, showing significant industry support for the algorithmic stablecoin project.
This funding comes at a time when the stablecoin market continues to expand, though I think it’s worth noting that algorithmic stablecoins have had a somewhat troubled history. The backing from these established players suggests they see potential in Standard Money’s approach, despite past challenges in this space.
Understanding USDsd’s Approach
USDsd operates as a yield-seeking algorithmic stablecoin that’s based on Tether’s USDT, which remains the largest stablecoin by market capitalization. The concept involves using smart contracts and economic incentives to maintain the token’s peg to its underlying asset. Essentially, the system automatically adjusts the circulating supply to keep the price stable.
But here’s where things get interesting – algorithmic stablecoins haven’t always worked as intended. Many people remember what happened with TerraUSD and the broader Terra-Luna ecosystem back in 2022. That collapse was pretty dramatic and made a lot of investors understandably cautious about this type of token.
Planned Use of Funds
According to the announcement, the $8 million will primarily support Standard Money’s mainnet rollout. This is a critical phase for any blockchain project, where the technology moves from testing to actual production use. The funds will also help expand the company’s liquidity partnerships and global operations.
It’s interesting to see that despite the historical concerns around algorithmic stablecoins, major industry players are still willing to invest significant amounts. Perhaps they believe the technology has evolved or that Standard Money’s specific approach addresses previous weaknesses.
Market Context and Future Outlook
The stablecoin sector has been growing rapidly, and this funding round suggests that some investors are revisiting the algorithmic model. The participation from exchanges like Gate.io and Crypto.com is particularly noteworthy, as these platforms would likely be key for trading and liquidity.
Still, I wonder if the market has fully processed the lessons from previous algorithmic stablecoin failures. The technology sounds promising in theory, but real-world implementation has proven challenging. Standard Money will need to demonstrate that their system can maintain stability under various market conditions.
The company’s focus on being “yield-seeking” adds another layer to their approach. This suggests they’re not just trying to create a stable store of value but also aiming to provide returns to holders. That’s an ambitious goal that will require careful balancing of incentives and risk management.
As the mainnet rollout progresses, it will be important to watch how USDsd performs in actual market conditions. The backing from major industry players gives the project credibility, but the true test will come when real users start interacting with the system at scale.
