The Luna Foundation Guard has acquired an additional 37,683 Bitcoin totaling $1.5 Billion to bolster the reserves of its most popular stable coin U.S. Terra.
Do Kwon, co-founder and CEO of Terraform Labs, said that the foundation is expected to complete its goal of purchasing $10 Billion worth of Bitcoin by the end of the third quarter.
So far the reserve now holds about $3.5 Billion in Bitcoin, which puts the UST reserve among the top 10 Bitcoin holders in the world.
The acquisition was done through a series of OTC swaps, with the first being a $1 Billion swap with Genesis. The second bulk of the acquisition was $500 Billion from crypto hedge fund Three Arrows Capital.
“For the first time, you’re starting to see a pegged currency that is attempting to observe the bitcoin standard,” Kwon said. “It’s making a strong directional bet that keeping a lot of those foreign reserves in the form of a digital native currency is going to be a winning recipe.”
Kwon recognizes that we now live in a time where there is excess money printing globally and believes that when monetary policies become politicized, there is a natural reaction from citizens that are self organizing to try to bring systems back to a sounder paradigm.
Joel Kruger market strategist from LMAX group believes that the corporate interest of buying bitcoin can significantly influence the value and legitimacy of Bitcoin. Adding that “With more demand from institutions comes added liquidity and longer-term interest, while validating the asset class at the same time.”
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