Microsoft Backs Wemade’s Blockchain Project in $46M Funding Round

Software giant Microsoft has made a $14.8 million investment in Wemade, a Korea-based blockchain gaming services company that recently launched its own stablecoin, named Wemix. The company was part of a $46 million investment round, which also saw the participation of two other companies: Shinhan Asset Management and Kiwoom Securities.

Microsoft backs Korean game company Wemade

Microsoft participated in a $46 million investment round to back Korean blockchain gaming operator Wemade. As part of this financing round, where Wemade sold convertible bonds, Microsoft bought $14.8 million worth of these bonds. Two other companies also participated — Shinhan Asset Management and Kiwoom Securities — with bond purchases of $21.2 million and $10.5 million respectively, according to regulatory filings.

Founded in 2000 and having operated more than 20 blockchain games, Wemade sees this development as a great success, even more so in the troubling economic times the cryptocurrency industry is going through. In a press release, Wemade CEO Henry Chang said:

This is a significant investment made by reputable, proven financial and strategic investors. Wemade and Wemix will continue to make efforts to attract more capital and actively invest to build the global digital economy platform.

Stablecoins in addition to gambling

Although Wemade is primarily focused on its gaming operations, the company is also establishing a token economy through its gaming properties. On October 22, Chang launched the company’s own stablecoin, called Wemix, aiming to establish it as a important part of the gaming ecosystem in the region.

The stablecoin, which is pegged to the US dollar, is fully backed by USDC and operates through a balancing protocol called Dios, which is designed to allow the price to hold even if the asset faces periods of demand. maximum. About this experimental launch, Chang said:

If Wemix performs successfully as expected, it will not only contribute to the growth of the Wemix mainnet ecosystem, but also become a key currency for blockchain transactions.

Although Microsoft’s Phil Spencer has been critical of what emerging technologies like win-win game models, NFTs and metaverses are bringing to the traditional gaming table, it hasn’t affected moves for other companies in the industry. On August 5, Star Heroes, a blockchain-based game still in development, received a grant from Microsoft to access tools available to other AAA game developers.

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