Babel Finance Wants to Launch New Stablecoin to Repay Debts
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March 6, 2023

Hong Kong crypto lender Babel Finance, which lost over $765 million in crypto due to its failed trading activities, is seeking an option to launch a new token to repay debts owed to creditors, Bloomberg reports.

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Babel Finance Co-Founder, Yang Zhou, proposed a restructuring plan as part of a moratorium of protection filed to the high court of Singapore on Monday. With the move, Zhou wants to isolate the company from creditors — who might sue the company — for up to six months.

The plan suggests creating a new decentralized finance (DeFi) project called Hope focused on a stablecoin with the same name backed by bitcoin (EXANTE: Bitcoin) and ether (ETH).

Celsius Considers Launching New Token to Repay Debts

To boost HOPE's adoption, Zhou wants to launch a set of products, which will use in their services the stablecoin: a decentralized exchange dubbed HopeSwap, and a peer-to-peer lending platform. However, the court is yet to approve the plan.

In summer 2022, Babel Finance suspended withdrawals and redemption of crypto assets following Celsius Network's crash. Founded in 2018, Babel Finance raised a total of $120 million from 11 investors, including Sequoia Capital China, Dragonfly and others, according to data from Crunchbase.

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