- Binance and Kraken spearhead a $10 million investment into the rapidly-growing stablecoin, USD0.
- Usual achieves $1 billion market cap in less than a year, disrupting traditional stablecoin models.
What happened: Binance and Kraken invest in decentralised stablecoin leader Usual
Binance and Kraken, two of the most prominent crypto exchanges, have joined forces to lead a $10 million Series A funding round for Usual, a decentralised stablecoin startup that has quickly gained traction since its launch in early 2024. Usual’s flagship stablecoin, USD0, has emerged as a major player in the stablecoin market, achieving the milestone of being the seventh-largest stablecoin by market capitalisation in under a year.
The token, backed 1:1 by real-world assets like U.S. Treasurys, provides a new level of transparency and security for investors. This fundraising highlights the confidence major industry players have in Usual’s innovative approach to decentralised finance and its potential to disrupt traditional stablecoin models. By prioritising compliance and transparency, Usual is creating a stablecoin ecosystem that seeks to address many of the longstanding issues with existing alternatives.
The funding round also attracted participation from notable industry players, including Ethena, a synthetic dollar platform, and Ondo, a firm that specialises in real-world assets. Another significant contributor is Echo, a decentralised crowdfunding platform founded by Jordan Fish, better known in the crypto world as Cobie, a prominent influencer and thought leader.
These high-profile backers add credibility and resources to Usual’s ambitious roadmap. Additionally, M^0, a stablecoin infrastructure company that recently partnered with Usual to expand its reserve assets, has joined the funding effort, further strengthening the project’s position.
This diverse group of supporters demonstrates the wide appeal of Usual’s vision and the potential for USD0 to carve out a significant niche in the crowded stablecoin market. Usual was founded by Pierre Person, a former member of the French Parliament and vice president of the political party that spearheaded France’s crypto asset legislation.
By providing a viable alternative to traditional stablecoins, Usual aims to distribute the benefits of decentralised finance more equitably while maintaining robust regulatory compliance. This unique approach positions Usual as a trailblazer in the stablecoin space.
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Why it’s important
Stablecoins like USDT and USDC have long dominated the market but have come under fire for issues like a lack of transparency and profit centralisation, where gains are primarily retained by issuing entities. Usual’s USD0 aims to address these criticisms with an innovative model that offers holders an impressive 80% annualised yield while ensuring full asset backing, primarily through U.S. Treasurys.
This decentralised approach aligns with web3 principles by promoting equitable value distribution among users rather than concentrating profits in centralised entities, setting it apart as a more user-centric financial solution.
This funding round signifies a pivotal moment for decentralised finance (DeFi), showcasing its maturity and growing ability to compete with centralised financial systems. The involvement of industry giants Binance and Kraken highlights increasing confidence in compliant, decentralised financial products. Usual’s rapid rise, supported by protocols like USD0++, solidifies its position as a disruptive force in the stablecoin sector.
By introducing new standards of transparency and equitable profit-sharing, Usual has the potential to shape the future of DeFi and redefine how stablecoins operate in the broader financial ecosystem.
