The Better Money Company has raised $10 million in funding led by a16z crypto, The Block reported on March 31.
The Better Money Company aims to build a clearinghouse that links the stablecoin ecosystem into a single network.
The Better Money Company compares the current stablecoin market to the U.S. dollar system in the 19th century. At the time, private banks issued their own bills, fragmenting the market, and the problem was resolved after clearinghouses emerged.
The company said, "A clearinghouse turns a distributed many-to-many market into an integrated network so the system can scale," adding, "A world with hundreds of stablecoins is rapidly approaching, and a clearinghouse is essential." It said that as the supply of dollar stablecoins from leading firms such as Tether and Circle increases and new stablecoins flood the market, a connecting structure spanning the entire ecosystem is needed.
The Better Money Company said the current structure is costly and lacks automation.
The company said Paxos, Bridge, MoonPay, Agora, M0, Bastion, Frax, Brale, MetaMask and Phantom plan to participate in the clearinghouse it is building.
Chi-gyu Hwang
delight@d-today.co.kr