Code & State Secures $3M Funding to Propel Stablecoin Innovations

Dubai-based venture studio Code & State has successfully raised $3 million in funding to incubate innovative stablecoin startups. This investment, backed by prominent firms Warburg Serres and KR1, aims to enhance the real-world adoption of stablecoins, which are increasingly seen as pivotal in the future of global finance.

Key Takeaways

• Funding Amount: Code & State has raised $3 million.
• Investors: Backed by Warburg Serres and KR1, both leaders in Web3 investments.
• Leadership: Cédric Waldburger and Artia Moghbel lead the initiative.
• Focus: The studio will incubate projects aimed at solving challenges in the stablecoin sector.
• EIR Program: Code & State is launching an Entrepreneur-in-Residence program to attract new talent.

The Vision Behind Code & State

Cédric Waldburger, a seasoned entrepreneur and founding investor in the Liquity stablecoin, leads Code & State. He envisions a significant growth trajectory for stablecoins, predicting their market cap could reach over $1.5 trillion in the next five years. Waldburger emphasizes the transformative potential of stablecoins in reshaping global finance.

Artia Moghbel, the former COO at Dfinity and co-founder of Code & State, adds that the firm’s specialized focus on stablecoins creates beneficial network effects for its ventures. This strategic approach aims to foster innovation and collaboration among startups in the stablecoin ecosystem.

Addressing Key Challenges in Stablecoins

The funding will be utilized to support startups that tackle various challenges within the stablecoin space, including:

• Payment Systems: Enhancing the efficiency and security of digital transactions.
• Remittances: Streamlining cross-border payments to reduce costs and increase speed.
• Compliance: Ensuring that stablecoin operations meet regulatory standards.
• Security: Developing robust systems to protect against fraud and cyber threats.

The stablecoin sector is witnessing explosive growth, with global transaction volumes surpassing $15 trillion in 2024, outpacing traditional payment systems like Visa. This surge highlights the urgent need for innovative solutions and infrastructure to support the increasing adoption of stablecoins in everyday transactions and decentralized finance (DeFi).

Entrepreneur-In-Residence Program

In a bid to attract top talent, Code & State is launching an Entrepreneur-in-Residence (EIR) program. This initiative aims to empower founders to develop new stablecoin-focused ventures within the studio. Selected entrepreneurs will benefit from:

• Hands-On Support: Direct mentorship from industry experts.
• Funding: Access to financial resources to kickstart their projects.
• Networking: Connections to a wide array of investors and industry leaders.

Waldburger emphasizes the importance of equity incentives, stating that portfolio founders will retain 80% of the upside in their ventures, which is crucial for attracting and retaining top talent in the competitive startup landscape.

Shaping the Future of Stablecoins

As the demand for secure and efficient digital payment solutions continues to rise, Code & State is poised to be a significant player in the stablecoin innovation space. With strong backing from established investors and a clear focus on incubating groundbreaking projects, the studio is set to drive the next wave of stablecoin adoption, unlocking new financial opportunities worldwide.

For more information about the EIR program and to explore potential collaborations, interested parties can visit Code & State’s official website.