Crypto giant Binance and three other big exchanges are joining together to fund Terra, a new initiative to get consumers to adopt digital money by using a so-called “stable coin.”
The idea of stable coins, as the name suggests, is to provide a cryptocurrency without the notorious volatility of Bitcoin and other popular digital assets.
To pursue the idea, Terra and its Korean-American founders have raised $32 million from the exchanges and from blockchain-focused investment funds, including Polychain Capital.
While Terra is hardly the only stable coin project out there, it contains a twist: Terra is partnering with a number of eCommerce ventures in Asia to encourage consumers to use the currency.
One of the Terra founders, Daniel Shin, used to run an e-commerce company in Korea. In an interview with Fortune, he explained that e-commerce is more common in Asia and that well known online brands will persuade consumers to give Terra a try using popular mobile platforms like WeChat.
The e-commerce strategy will involve providing discounts and rewards for consumers who use Terra. The merchants, meanwhile, have an incentive for Terra to succeed since it would let them pay only a fraction of the…