Babel Finance Plans to Issue a Stablecoin
Babel Finance, a crypto financial services provider, is reportedly planning to issue a stablecoin to pay off debts to creditors.
According to Bloomberg, the project, titled Babel Recovery Coins, consists of two assets – the HOPE stablecoin, which is 50% backed by Bitcoin and Ethereum, and the Light Token token.
The company is seeking a moratorium on creditor protection from the Singapore High Court, asking for further action to be withheld for up to six months.
In May of 2022, Babel Finance raised $80 million at a $2 billion valuation, but a month later, the company had to suspend withdrawals from its own products due to liquidity issues.
Reports of insolvency were denied by the company, with representatives stating that they had achieved “preliminary agreements” on the payment of part of the debts. In July, it was reported that the crypto lender had lost $280 million on trading client funds.
