Leading stablecoin company Tether invested millions into cryptocurrency lending platform Celsius.
The stablecoin issuer Tether International became a lead investor into the cryptocurrency lending platform Celsius Network this week. The company has poured $10 million funds in Celsius’ first equity round.
Tether, the leading stablecoin with over 9 billion issued tokens and the highest daily volume of any cryptocurrency token invested in Celsius during the private investment round, which was only available for the selected group of investors.
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According to a press release, the company became the first institutional investor in Celsius’ equity fundraising. The investment is a part of a $30 million equity investment, which Celsius plans to use for growing the community and expanding its institutional services globally. As Celsius CEO Alex Mashinsky said:
The crypto community has only a few great projects and we are excited by the investment from Tether International as it will help us deliver USDT-based services to all our users. We are proud to add Tether International as the first institution to participate in our equity fundraising.
Celsius is an Ethereum-based decentralized finance (DeFi) lending platform that allows earning interests from lending cryptocurrency assets. The network launched three years ago claims it is currently one of the leading DeFi lending protocols and has already paid over $17 million interest rewards for its investors since launch. The company has over 40.000 active wallets for the time of writing as well.
Despite the financial injection from the venture capital companies, the Celcius Network claims to remain loyal to its mission which reads “to do what is best for our community”. This means that the platform will be offering the equal highest earning potential to all of its users with whom the company is committed to sharing up to 80% of its income.
The latter case is another time when the stablecoin company invests in decentralized finance (DeFi) projects. Earlier this year Tether International backed the lending platform Aave as well, whose users also can borrow or lend one of the most liquid stablecoins USDT.
In the meantime, Tether is widely listed across various platforms of DeFi, which in general is living its golden age now. The total market capitalization of all DeFi projects increased twice since April and currently exceeds $2 billion. The lending services as well as decentralized exchanges (DEX), whose token returns exceeded the amount of profit of centralized exchanges five times since the beginning of the year, are currently the leading services across the DeFi market.
