Network Celsius announced today that stablecoin company Tether is a major investor in a $10 million funding round.
Network Celsius is a lending platform that uses the Ethereum blockchain. It manages more than $680 million and has paid more than $17 million in interest to i100,000 active wallet owners, he said.
Tether is the lead investor in the $10 million funding round, which is not open to the public. The sister company of crypto exchange Bitfinex, Tether mints the dollar-pegged stablecoin, also referred to as USDT. Has issued more than $9 billion tokens.
Tether poured the most money into Celsius during this funding round. Celsius did not disclose the names of other investors, although it did mention that Tether was the first institution to take part. Celsius did not grant any investor board seats.
“We are very happy with the investment from Tether International as it will help us to provide USDt based services to all our users,” Celsius CEO Alex Mashinsky said in a statement. “We are proud to add Tether International as the first institution to participate in our equity fundraiser.“
An additional $5 million is up for grabs for eligible investors, who can buy equity for as little as $1,000 via BnkToTheFuture, an investment crowdfunding platform with over 85,000 users.
This investment is one of the first times that Tether has invested in decentralized finance, or DeFi. In March, Tether invested in Aave, a DeFi lending platform that offers express loans.
Flash lending gives users access to unsecured loans, which means they can be used to raise a lot of money very quickly.
Tether, however, has a controversial history. It is currently being investigated by the New York Attorney General, who alleges that its sister company, Bitfinex, used funds from its Tether reserves to cover an $850 million hole in its finances.