Cryptocurrencies
Terra Blockchain Backer to Lend Bitcoin After UST Losing Dollar Link
- Terra’s UST stablecoin lost its dollar peg on Saturday
- Terra has passed a proposal of $1.5 billion Bitcoin, UST loans
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The closely watched stablecoin TerraUSD is getting propped up by its backers after losing its peg to the dollar over the weekend.
TerraUSD, or UST, dropped well below the crucial $1 level again on Monday, trading as low as 88 cents on the crypto exchange Binance. The declines spurred backers led by Do Kwon, the founder of Terraform Labs -- which powers the Terra blockchain -- to issue $1.5 billion in loans denominated in both UST and Bitcoin to help support the digital currency.