Nonprofit Raises $1B To Create Bitcoin Reserve, Support Terra Ecosystem Growth

The funds will be used to establish a bitcoin reserve for Terra’s UST stablecoin

article-image

Blockworks exclusive art by axel rangel

share

key takeaways

  • This is one of the largest capital raises to date in the crypto industry, next to NYDIG’s $1 billion funding round in December 2021
  • “[It’s] $1B to absorb liquidity crunches,” Kanav Kariya, president of Jump Crypto, tweeted

A nonprofit working to scale the ecosystem of the Terra blockchain has raised $1 billion in a private token sale.

With the funding, the Luna Foundation Guard (LFG) plans to establish a bitcoin reserve for Terra’s UST stablecoin.

“The UST Forex Reserve is an initiative to provide a further layer of support using assets that are considered less correlated to the Terra ecosystem, initially with Bitcoin but with plans to expand to other major non-correlated assets within the market moving forward,” the foundation said in a statement.

Jump Crypto and Three Arrows Capital led the token sale, with participation from DeFiance Capital, GSR, Republic Capital, Tribe Capital and others.

The raise is one of the largest to date in crypto, next to NYDIG’s $1 billion funding round, which raised its valuation above $7 billion in December.

Terra, a fast-growing blockchain, now supports more than 70 projects.

As an algorithmic stablecoin, UST is pegged to a series of financial aspects within the Terra protocol, which leads to moves above or below $1. LUNA — Terra’s reserve, staking and governance asset — retains an elastic supply to help neutralize market pressures.

“[It’s] $1B to absorb liquidity crunches,” Kanav Kariya, president of Jump Crypto, tweeted. “All contractions in the economy have caused reflexive movement (by design). Allowing for a big chunk of withdrawals in [a] short span through different means can be really impactful.”

The token sale will capitalize initially on its UST Forex Reserve, with investor purchases locked up over a four-year vesting period.

Additional details on the reserve’s function will be released in coming weeks, the foundation said. LFG was not available for additional comment.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

REPORT_Template.png

Research

The Sonic blockchain is leveraging redesigned airdrop incentives and its FeeM program to propel DeFi activity and attract institutional capital, setting the stage for ecosystem growth. Within this environment, leading protocols Shadow Exchange and Silo are poised to asymmetrically benefit due to innovative features and favorable valuations, despite facing ecosystem dependency and competitive pressures. This positions them as compelling, potentially shorter-term, investment opportunities contingent on Sonic's sustained success.

article-image

Bitcoin needs a price, but its magic runs deeper

article-image

Circle had a pretty successful first day of trading, but what’s next for the stablecoin issuer?

article-image

Solana’s USDC caught a boost after being paired with the TRUMP memecoin

article-image

The stablecoin issuer’s successful first day of trading is likely to spur more crypto IPOs, industry watchers say

article-image

Job openings rallied and continuing claims stalled ahead of May’s employment report

article-image

A group of Twitch streamers battle for bitcoin. Will their chats help them?