Swiss asset manager GAM Holding has just announced that it is in negotiations with Terra developer Terraform Labs to support its UST stablecoin.
GAM said it could potentially invest between $2 billion and $3 billion to destroy UST’s excess supply. GAM plans to help Terra restore the stablecoin’s peg to the dollar.
This update comes amid reports that Terra was seeking help from private capital to support the UST link. Terra is reportedly seeking more than $1.5 billion. Terra founder Do Kwon also recently said that Terra was considering turning UST into a traditional stablecoin, which would require a lot more capital.
Asset manager GAM sees potential in UST
Asset manager GAM said in a press release that they want to support Terra’s stablecoin because the asset manager sees huge potential in the Terra ecosystem. The company also relies on UST’s algorithmic mechanism to maintain its linkage.
“When black swan events impact markets, opportunities arise. We see opportunity in UST’s recent activity and continue to see promise in Terra’s broader strategy.” According to CEO Peter Sanderson.
Asset manager GAM is not a small player. It has more than $95 billion in assets under management. It is also listed on the SIX Swiss Exchange.