WSPN raises $30m to expand stablecoin infrastructure

Stablecoin infrastructure startup WSPN has raised $30 million in a seed round to boost its stablecoin adoption mission.

The Worldwide Stablecoin Payment Network — also known as WSPN — has raised $30 million in seed funding to double down on its “Stablecoin 2.0” approach. In a press release on August 16, the company 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 support from more than 30 cryptocurrency exchanges, more than 10 wallets and a range of payment institutions and market makers, although it did not disclose their names.

According to the information on the project’s official website, the Singapore-based startup also has its own stablecoin products such as WUSD and WEUR, which are backed by cash, cash-like assets and short-term treasury bonds.

The governance token will manage the stablecoins

While the financial terms of the round were not disclosed, WSPN’s “Stablecoin 2.0” approach revolves around the introduction of a “governance token” designed to allow users to share in the long-term value of the ecosystem and influence its development trajectory. The firm plans to implement on-chain voting, allowing token holders to participate in key decision-making processes, ensuring transparency and community-driven governance, the press release states.

Commenting on the funding, WSPN CEO Raymond Yuan said the “significant capital injection” will accelerate the startup’s efforts to “unveil the next-generation stablecoin infrastructure.”

The funding comes at a time of uncertainty for the stablecoin market. In mid-July, Tether CEO Paolo Ardoino expressed concerns that Europe’s MiCA regulations, with their stringent cash reserve requirements, could create systemic risks for banks.

While MiCA has sparked a scramble among issuers to comply, blockchain analytics firm Kaiko notes that so far only one stablecoin provider, Circle, has benefited from the new regulations. For now, there are no indications that Tether plans to register in the EU to operate under the new regulatory framework.