Circle, the company behind the USDC stablecoin, has backed CNHC, an offshore Chinese yuan-backed stablecoin as the market continues to grapple with non-transparent regulation in the US.
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According to a report from TechCruch, other investors, including KuCoin Ventures and IDG Capital, have also joined the $10 million funding round. However, Circle's size of the investment remains undisclosed.
A spokesperson for CNHC admitted in a commentary that the company is yet to get approval from the Hong Kong Monetary Authority.
Founded in early 2021, the stablecoin is issued on the Ethereum blockchain and Conflux, a KuCoin-backed layer-1 network. CoinDesk noted that on Ethereum there are only 23 addresses that hold 95% of CNHC with a total of 102 transactions so far. On Conflux, there are 606 holders and 1,487 transfers. According to reports, CNHC processed $40-50 million on a monthly basis in 2022.
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