Terra Expands Stablecoin Reserve Beyond Bitcoin With Avalanche
- It chose Avalanche over Ether because of its rapid growth
- Avalanche is the 10th biggest cryptocrrency by market cap
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Public blockchain Terra, which captured the attention of the cryptocurrency world by pledging to buy $10 billion in Bitcoin to build a reserve for its UST stablecoin, is diversifying that strategy.
Luna Foundation Guard, a Singapore-based nonprofit organization built to support Terra, will acquire Avalanche tokens worth $100 million from the Avalanche Foundation to boost the stablecoin reserve. The native token of the Avalanche blockchain has a total market capitalization of $22.1 billion as of Thursday, according to data aggregator CoinGecko. The over-the-counter purchase will make the token the second asset in the UST reserve after Bitcoin.