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LFG Adds $1.5 Billion in Bitcoin to UST Reserves

  • Do Kwon wants UST reserves to hit $10 billion in bitcoin
  • LFG has partnered with Genesis Trading and Three Arrows Capital to complete the purchase

With the help of Genesis Trading and Three Arrows Capital, the Luna Foundation Guard (LFG) has added $1.5 billion in bitcoin to its UST stablecoin reserves.

LFG, the nonprofit founded to support Terra, announced Thursday that it has closed a $1 billion UST-to-Bitcoin over-the-counter swap led by digital asset prime broker Genesis. The average price of purchases was not disclosed.

LFG bought $500 million worth of bitcoin through crypto hedge fund Three Arrows Capital, bringing LFG’s total purchases to $1.5 billion in bitcoin.

“LFG’s mission of supporting the stability and adoption of the UST stablecoin continues with the recent deal to acquire BTC from Genesis for the UST forex reserve,” said Do Kwon, board member of LFG and co-founder and CEO of Terraform Labs, in a Explanation. “As a leading digital currency broker, Genesis’ involvement demonstrates the growing demand for decentralized stablecoins in the broader crypto market and helps build bridges between crypto communities bound together by a common decentralized money.”

The purchase increases LFG’s Bitcoin holdings to around $3 billion. Kwon has said he hopes to acquire $10 billion worth of Bitcoin reserves.

“LFG has announced that they intend to continue acquiring BTC as the preferred long-term stabilizing asset for UST,” said Jordi Alexander, chief investment officer at Selini Capital and a well-known Terra Defiantcalled.

“While their purchases may be temporarily halted now, it wouldn’t be surprising if UST issuance continued to increase going forward as they resume buying to get closer to their interim goal of $10 billion in Bitcoin. “

The announcement comes less than a month after LFG acquired $100 million of the Avalanche Foundation’s native token AVAX to build UST reserves. Industry officials weren’t surprised by the choice, as a $100 million swap accounts for nearly 0.5% of AVAX’s market cap, making it a good opportunity to bring new fans and users to UST.

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The post LFG Adds $1.5 Billion in Bitcoin to UST Reserves is not financial advice.

Source: Crypto News Austria

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