According to a Thursday report by the Wall Street Journal, 1Money, a new company launched by former Binance.US CEO Brian Shroder, has secured a total of $20 million in funding.
The funding came from Tribe Capital, Galaxy Ventures, and other participants.
Shroder spearheaded the U.S. arm of the global exchange giant back in 2021. After two years at the helm, he then parted ways with the exchange back in September 2023 amid a legal fight with the U.S. Securities and Exchange Commission.
He then went silent for more than a year with no social media activity before eventually announcing the funding earlier this Thursday.
Tomiwabold OlajideThe funding will help the startup to launch its own stablecoin network. It is expected to go live later this year.
The yet-to-be-launched network has been touted as the first layer-1 protocol that has been specifically designed for fast stablecoin payments. The network will not roll out its own native cryptocurrency.
Shroder told the WSJ that it was exciting for him to look for new solutions to existing payment problems. This inspired him to eventually found a new startup.
It is not surprising that Schroder has opted to launch a stablecoin-focused startup given that this sector of the cryptocurrency industry is growing at breakneck speed.
The market cap of Tether, the biggest stablecoin, currently stands at a staggering $137 billion. Circle's USDC boasts a market cap of $46.3 billion.
Bernstein analysts recently predicted that the stablecoin market could swell to as much as $500 billion in 2025. Last year, this sector grew by nearly 60%.
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Valeria Blokhina
Vladislav Sopov
Dan Burgin