In a new interview on the Unchained Podcast, Terraform Labs CEO Do Kwon explains the plan to accumulate the top crypto asset by market cap in an effort to back Terra’s native stablecoin, TerraUSD (UST).
Kwon says that UST being backed by BTC would help investors trust in the stablecoin when Terra expands to other blockchains.
“Terra’s goal is to be the largest decentralized money in crypto, period. Its goal is not to be the largest stablecoin in the Terra blockchain, so we’re sort of expanding into let’s say the Solana ecosystem, Avalanche, Ethereum, Polygon. We plan to be everywhere where there are developers and users.
Now the thing is, different from growing stablecoin demand in the Terra ecosystem itself where trust in UST is extremely high – when you go to expand into these different ecosystems, then faith in LUNA’s collateral fitness is a lot less than what it is like in the Terra ecosystem.
But if you have Bitcoin as collateral, then nobody really questions it because it is the apex.”
According to Kwon, Terra plans to hoard $10 billion worth of BTC in order to become the second-largest holder of the king crypto on the planet.
“I think if we scaled out to $10 billion, the reason I want to get to $10 billion, is that besides Satoshi, we will be the largest single holder of Bitcoin in the world.”
Kwon first announced Terra’s plan to acquire BTC earlier this month.
Bitcoin is exchanging hands at $47,269 at time of writing, a 1.7% drop in the day while Terra is trading for $105.11, also a 1.7% drop during the same timeframe.