Andreessen Horowitz has tapped its newly-launched crypto fund to invest into MakerDAO’s Dai stablecoin.
a16z crypto, which is a $300m crypto fund from Andreessen, has bought 6 per cent of the total MKR token supply, in a deal worth $15m. As token holders, a16z will participate in governance of MakerDAO and the Dai Credit System.
a16z will serve as a peer to MakerDAO and supply operating capital to aid its growth, three years of support for the community and operational aid.
MakerDAO is a blockchain-based platform which offers a stable digital currency and access to collateral loans.
Dai is the company’s asset-backed currency which is developed through the Ethereum blockchain. Individuals can use the currency to make payments at accepting merchants, investing and trading, and an ability of hedging the token when the market is volatile.
Through the investment, MakerDAO hopes to boost its evolution, innovation and adoption of the Dai Credit System.
a16z general partner Katie Haun said, “As a first mover and innovator in stablecoins, MakerDAO represents a very compelling opportunity in the crypto space.
“MakerDAO’s technology, ecosystem and talent have put theory into action to deliver a decentralized stablecoin that we believe will help drive the future of the crypto economy.”
This investment marks one of the first investments from a16z crypto, which launched earlier in the year. The fund will look to invest over the next 10 years and into any stage, asset type and geography.
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