Babel Finance co-founder Yang Zhou is hoping to turn the tide for the troubled crypto lender with a new stablecoin. The Hong Kong-based project was one of three prominent firms that floundered last June, forcing it to halt withdrawals. The company’s proprietary trading desk directed customer funds worth $766 million to risky trading activities, leaving it with a significant debt to repay.
To address this issue, Babel has proposed using the revenue generated by a decentralized finance project minting “Babel Recovery Coins” to repay the debt it owes to creditors. Zhou, who also happens to be the sole director of Babel, believes this new stablecoin can fix the crypto lender’s financial woes.
The project in question is dubbed “Hope,” according to a report by Bloomberg. Yang previously stepped down from his leadership position but resumed later. The focus is now on repaying the debts, and the Babel team is optimistic that the new stablecoin will help them achieve this goal.
The stablecoin market has been growing rapidly in recent years, with many new projects launching to meet the demand for stable digital assets. Stablecoins are designed to maintain a stable value, usually pegged to a fiat currency like the US dollar. This stability makes them an attractive option for investors looking to avoid the volatility of other cryptocurrencies.
Babel’s new stablecoin is expected to launch soon, and the team is confident that it will be a success. If all goes according to plan, the revenue generated by the Hope project will be used to repay the company’s debts, and Babel Finance can move forward with renewed confidence.
