Tether backs Stablecoin Development Corporation’s $134 million private placement used to acquire SKY tokens
QUICK TAKE - The Stablecoin Development Corporation is a publicly-traded holding company with an approximate 2.15 billion SKY token treasury. - Tether announced on Wednesday that it supported SDEV’s $134 million private placement in January.
Tether has named itself as a backer of the publicly-traded holding company Stablecoin Development Corporation’s previously announced $134 million fundraise, according to a release on Wednesday.
SDEV, the firm’s NYSE American ticker and frequent abbreviation, is designed to provide public market investors with structured exposure to the stablecoin sector, including through its strategic position in Sky (formerly MakerDAO).
The firm holds SKY, the governance token for the Sky Protocol, and uses Sky's USDS stablecoin, the third-largest stablecoin by market capitalization and the largest that’s fully onchain.
As of March 31, the SDEV holds approximately 2.15 billion SKY tokens, representing approximately 9.15% of the total token supply.
Tether’s release on Wednesday also notes SDEV works to identify “how stablecoins and decentralized finance are used in practice” and the ways to reduce user adoption friction.
“Stablecoins are already being used far beyond trading, especially in places where traditional systems don’t work well,” Tether CEO Paolo Ardoino said in a statement. “What matters now is making that infrastructure more reliable and easier to use, so people can rely on it day to day. The next phase of adoption will be driven by systems that make digital assets practical and accessible for everyday use.”
Private placement
SDEV was formed through a merger with NovaBay Pharmaceuticals, Inc., with its updated SDEV ticker going live on the NYSE American exchange in early April.
The firm raised a $134 million in a private placement that closed in January, which included a 943.6 million SKY token deposit as well as $25 million in cash and $51 million in stablecoins used to purchase 1.17 billion additional SKY tokens. Investors were given warrants to purchase SDEV common stock, according to an earlier press release.
A Tether representative confirmed to The Block that Tether participated in this same $134 million fundraising event. R01 Fund LP, Sky Frontier Foundation, and Framework Ventures, a notable Sky network supporter, also supported the round.
SDEV also earns SKY tokens by participating in the network’s staking ecosystem, which has thus far yielded about 26.6 million SKY tokens worth nearly $2 million.
