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 participation from two other companies – Shinhan Asset Management and Kiwoom Securities.
Microsoft backs Korean gaming company Wemade
Microsoft has participated in a $46 million investment round to support Korean blockchain gaming operator Wemade. As part of the round, in which Wemade sold convertible bonds, Microsoft bought $14.8 million worth of the bonds. Two other firms 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, more so in the troubling economic times the crypto-currency industry is going through. In a press release, Wemade CEO Henry Chang said::
This is a significant investment by reputable financial and strategic investors with a proven track record. Wemade and Wemix will continue to make efforts to attract more capital and actively invest to build the global platform for the digital economy.
Stablecoins on top of the game
While Wemade is primarily focused on its gaming operations, the company is also establishing a token economy via its gaming properties. On October 22, Chang launched the company’s own stablecoin, called Wemix, aiming to establish it as an important part of the gaming ecosystem in the region.
The stablecoin, which is pegged to the U.S. dollar, is fully backed by the USDC and operates through a balancing protocol called Dios, which is designed to allow the price to be maintained even if the asset faces periods of peak demand. About this experimental launch, Chang said:
If Wemix performs successfully as expected, it will not only contribute to the growth of the Wemix backbone ecosystem, but will also become a key currency for blockchain transactions.
While Microsoft’s Phil Spencer has been critical of what emerging technologies like win-win models, NFTs, and metavers bring to the traditional gaming table, it hasn’t affected moves regarding other companies in the industry. On August 5, Star Heroes, a blockchain-based game still in development, received a grant from Microsoft to access the tools available to other AAA game developers.