Ethereum-challenger and stablecoin issuer Terra (LUNA) plans to accumulate a staggering $10 billion worth of Bitcoin (BTC) to add to its reserves, according to Do Kwon, the project’s founder and chief executive officer.
Kwon took to Twitter to tell his 248,000 followers that Terra will be one of the world’s largest stakeholders of BTC.
Terra is a decentralized finance (DeFi) blockchain payment network that aims to simplify transactions by using stablecoins.
Kwon also argues that Terra having $10 billion in BTC reserves “will open a new monetary era of the Bitcoin standard.”
“P2P [peer-to-peer] electronic cash that is easier to spend and more attractive to hold BTC.”
Kwon says the Bitcoin will “backstop short-term UST redemptions.” TerraUSD (UST) is Terra’s US-dollar value pegged stablecoin.
Kwon notes that the blockchain platform won’t sell any of its native asset, LUNA, to build the Bitcoin reserves.
Says the chief executive officer,
“BTC thrives in chaos. An orange light to endure in the darkness — which UST will bring to millions.”
Bitcoin is trading at $40,926.08 at time of writing. The top-ranked crypto asset by market cap is up more than 5.7% in the past 24 hours while LUNA is exchanging hands at $89.30, a 5% drop on the day.
Don't Miss a Beat – Subscribe to get email alerts delivered directly to your inboxFeatured Image: Shutterstock/ViliamZahurak1234