Chia Network Set to Launch Peer-to-peer Exchange Service, XCH Price Up 10%
Chia says it will realease a peer-to-peer product for wallet holders and also launch a USD stablecoin with help from Stably.
Chia Network announced on Tuesday, January 11th, that it is launching native, peer-to-peer exchange services called ‘Offers’ for Chia wallet holders. Chia also revealed that it tapped crypto-specializing infrastructure and fintech company Stably to help launch its dollar stablecoin, USDS, on the Chia blockchain. Gene Hoffman, Chia’s president and chief operations officer, spoke about Chia and the stablecoin:
“Chia is meeting critical security and compliance needs to make peer-to-peer transactions safer and easier. Launching Offers is the first step in delivering on those needs, and our partnership with Stably to provide US dollar-pegged stablecoins and wrapped cryptocurrencies is integral to the process.”
In a media session, Hoffman was enthused about the latest development and how it would help the platform. He explained that through the Offers initiative, Chia will connect with its “core community of early adopters”. This is a fledgling group of users that notably includes entrepreneurs and developers.
Furthermore, Hoffman also stated that stablecoins represent a great medium for businesses to deposit dollar value into a Chia wallet. Doing this also makes it possible for the holder to buy carbon credits.
USDS is the first stablecoin linked to the US dollar to feature on the Chia blockchain. In addition to the stablecoin, Stably will also include Wrapped BTC and Wrapped ETH on the Chia blockchain.
Chia makers and takers – essentially Chia wallet holders – can facilitate and accept trades using ‘Offers’. Furthermore, according to Chia, this service also provides smart contracts functionality to users. This implies that two parties can execute and conclude trades securely. These trades can start and finish without the need for middlemen custodians typical of centralized exchanges. Furthermore, the feature also runs without fees or exposure to counterparty risk.
Chia Conducted Funding Round in 2021 Prior to Current Peer-to-peer Initiative
Chia raised about $61 million last year in a Series D funding round that saw the company valued at $500 million, more than double its previous valuation. The blockchain network says it intends to channel the new funding towards hiring and further establish itself as a payment method for disparate clients. Some of these clients include financial services firms, various governments, and other establishments. In addition, part of the San-Francisco-based firm’s objective is to cut down the energy dependency of public blockchains.
At the time, the funding round was part of creator Bram Cohen’s plan to take his company public. The founder is also the founder of BitTorrent, a leading communication protocol for peer-to-peer file sharing. The 2021 fundraise exercise was led by Andreessen Horowitz (a16z) and Richmond Global Ventures, two big players in the venture capital space. In addition, pursuant to a prior agreement, Richmond Global Ventures managing partner David Frazee will become part of Chia’s board.
Meanwhile, Chia (XCH) price is currently almost 10% up, trading at $94.
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