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South Korea’s Kakao Ventures joins Draper, Andreesen Horowitz in backing Terra’s blockchain payments technology

Tony Zerucha

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Terra, a global blockchain-based fintech company that is building the next-generation payment system, today announced a strategic investment from Kakao Ventures, the early-stage venture capital and independent subsidiary of South Korea’s internet giant, Kakao. Through this investment, Kakao Ventures will help accelerate the expansion and mainstream usage of Terra’s blockchain payment solution.

This investment is one of many strategic alignments between Terra and the larger Kakao family, South Korea’s leading IT company and messaging app operator with 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. Following the investment from Kakao Ventures, Terra has also secured an investment from Kakao Investment, another independent arm of Kakao’s that recently reported to having invested $57 million in blockchain and AI.

“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,” said Daniel Shin, cofounder of Terra.

“We 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. Terra has crafted a unique go-to-market strategy with its massive Asian eCommerce alliance, and we look forward to supporting its team,” said Shina Chung, CEO of Kakao Ventures.

Terra has designed a stablecoin that can be used as a method of payment on its next-generation blockchain payment solution. It aims to become the first widely used cryptocurrency by pushing adoption through its formidable eCommerce alliance across Asia. To date, the Terra Alliance has a collective annual transaction volume of $25 billion and 45 million users, including Asia-Pacific giants such as TMON, Baemin, Carousell, Qoo10, and Tiki.

The strategic investment from Kakao Ventures will support Terra’s product development and launch, which is currently slated for Q2 2019.

Tony Zerucha

Tony Zerucha is an alternative finance journalist with more than seven years experience in the space. The author of more than 1,000 articles, Tony was named LendIt's 2018 Journalist of the Year.

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