DeFi Firm Usual Labs Raises $7M Round Led by Kraken Ventures and IOSG

According to a statement released on Wednesday, Usual Labs, the organization responsible for the decentralized finance (DeFi) protocol Usual, has secured $7 million in funding and obtained commitments totaling $75 million for their upcoming stablecoin, USD0.

Over a hundred companies, including IOSG Ventures and Kraken Ventures as major investors, contributed funds to the French firm. Additionally, the list of investors includes GSR, Mantle, Starkware, Flowdesk, Avid3, Bing Ventures, Breed, Hypersphere, Kima Ventures, Psalion, Public Works, and X Ventures. (This version aims to keep the original meaning but with a more conversational tone.)

Approximately $75 million of the total value locked (TVL) comes from investments made by the company’s own backers, as well as from entities and individuals that are part of the same investment ecosystem.

Usual Labs can raise funds to get ready for the debut of its USD0 stablecoin on Ethereum‘s mainnet in Q2. This involves wrapping up the testnet phase, forming collaborations with key players, and conducting thorough audits of our smart contracts to ensure safety and productivity. (Usual Labs’ statement)

USDT, USDC, and DAI, with a combined value of $141.4 billion, are leading stablecoins in the current market, holding approximately 90% of the market share. USD0 is a newcomer in this sector, functioning as a stablecoin with no permission required, secured by real-world assets. Investors in this coin will receive returns derived from these underlying assets. The competition among stablecoins continues to intensify.

“The market for stablecoins is very crowded with many competitors. To stand out, Usual had to come up with a unique solution, according to Pierre Person, CEO and co-founder of Usual, in an email interview. Usual aims to offer a stablecoin that prioritizes the security of its users, believing strongly that control over value and governance should belong to the users themselves.”

Last week, Bernstein mentioned in a research report that stablecoins are increasingly being utilized for cross-border transactions. Payment services, fintech businesses, and consumer platforms are some of the entities leading the way in this adoption.

Read more: Finance Protocol Usual Introduces Stablecoin Backed by Real-World Assets

CORRECTION (April 17, 15:16 UTC): Company corrects investor name to IOSG Ventures.