Kakao’s Venture Capital Arm Invests In Crypto Stablecoin Terra

Investing, News | March 4, 2019 By:

Blockchain project Terra has received an undisclosed investment from Kakao Ventures, the early-stage venture capital and independent subsidiary of South Korean Internet giant Kakao.

Terra is a blockchain protocol of money that ensures price-stability by algorithmically expanding and contracting supply. The company has developed a price-stable digital currency that is designed for mass adoption. To date, the Terra Alliance has a collective annual transaction volume of $25 billion and 45 million users, including Asia-Pacific giants such as TMON, Baemin, Carousell, Qoo10, and Tiki.

Kakao Ventures’ investment came after Terra teamed with the Internet giant’s blockchain platform Klaytn, which was announced in November 2018. The two companies are exploring ways to utilize the Klaytn platform for Terra’s blockchain services and conduct joint research to bring the Terra stablecoin to the Klaytn platform. Terra said that the investment from Kakao Ventures will help accelerate the expansion and mainstream usage of its blockchain payment solution. In addition, Terra has also secured an investment from Kakao Investment, another independent arm of Kakao.

“Investments from Kakao Ventures and Kakao Investment are strong testaments to Terra’s ability to bring blockchain technology to the masses,” said Daniel Shin, cofounder of Terra. “Kakao has become a staple to its 50 million users worldwide. From instant messaging to online financial services, Kakao’s technology has transformed various elements of our daily routines. Through these strategic investments, we can leverage its unique expertise and insight into building mainstream products. We look forward to our future collaborations.”

“We expect Terra’s protocol to achieve stability in an unprecedented way, becoming the first truly useful digital currency by solving a lot of problems that asset-backed and pure algorithm based stablecoin projects could not,” said Shina Chung, CEO of Kakao Ventures. “Terra has crafted a unique go-to-market strategy with its massive Asian eCommerce alliance, and we look forward to supporting its team.”