Blockchain-based payment platform Terra has received an investment from VC Kakao Ventures – an independent subsidiary of South Korea’s internet firm, Kakao. The amount of the investment was not disclosed but was said to fund the expansion and mainstream usage of Terra’s blockchain payment solution which is scheduled to launch in Q2 of 2019. Following the investment from Kakao Ventures, Terra has also secured an investment from Kakao Investment, another independent arm of Kakao’s that has invested about $57 million in both blockchain and AI.
Shina Chung, CEO of Kakao Ventures, said they expect Terra’s protocol to achieve stability in an unprecedented way, becoming the first truly useful digital currency by solving a lot of problems that asset-backed and pure algorithm based stablecoin projects could not.
The investment is one of “many” stratealignmentsents between Terra and Kakao – a company that features multiple products including a messaging app which claims over 50 million users. Terra has already partnered with Kakao’s blockchain platform Klaytn to explore ways in which Terra’s stablecoin and payment system can be utilized on its public blockchain platform.
Daniel Shin, Co-founder of Terra, said the investments from Kakao Ventures and Kakao Investment are strong testaments to Terra’s ability to bring blockchain technology to the masses.
“Kakao has become a staple to its 50 million users worldwide. From instant messaging to online financial services, Kakao’s technology has transformed various elements of our daily routines. Through these strategic investments, we can leverage its unique expertise and insight into building mainstream products. We look forward to our future collaborations.”
Terra has also created a stablecoin that may be used as a method of payment on its payment platform. Terra seeks to become the most widely adopted crypto in Asia.
To date, the Terra Alliance has reported a collective annual transaction volume of $25 billion and 45 million users, including Asia-Pacific giants such as TMON, Baemin, Carousell, Qoo10, and Tiki.