Stablecoin infrastructure startup WSPN has secured $30 million in a seed round to boost its stablecoin adoption mission.
Worldwide Stablecoin Payment Network — also known as WSPN — has attracted $30 million in seed funding to double down on its “Stablecoin 2.0” approach. In an Aug. 16 press release, the firm said the round was led by Foresight Venture and Folius Ventures, with participation from Hash Global, Generative Ventures, Yunqi Partners, and RedPoint China, among others.
Founded by former employees of Visa and Paxos, WSPN says it has secured backing from over 30 cryptocurrency exchanges, more than 10 wallets, and a range of payment institutions and market makers, without naming them.
The Singapore-based startup also boasts its own stablecoin products like WUSD and WEUR, which are backed by cash, cash equivalents, and short-term treasury bills, according to the project’s official website.
Governance token to rule stablecoins
While the financial terms of the round were not disclosed, WSPN’s “Stablecoin 2.0” approach centers around the introduction of a “governance token,” designed to allow users to share in the ecosystem’s long-term value and influence its development trajectory. The firm plans to implement on-chain voting, enabling token holders to participate in key decision-making processes, ensuring transparency and community-driven governance, the press release reads.
Commenting on the funding, WSPN CEO Raymond Yuan said the “substantial capital injection” will accelerate the startup’s efforts to “bring about the next generation of stablecoin infrastructure.”
The funding comes at a time of uncertainty for the stablecoin market. In mid-July, Tether CEO Paolo Ardoino raised concerns that Europe’s MiCA regulations, with their stringent cash reserve requirements, could create systemic risks for banks.
Although MiCA has prompted a rush among issuers to comply, blockchain analytics firm Kaiko notes that only one stablecoin provider, Circle, has so far benefited from the new regulations. As of now, there are no indications that Tether intends to register in the EU to operate under the new regulatory framework.