The Sandbox, a user-generated content metaverse platform, has raised $20 million in convertible debt at a $1billion market valuation.

The Sandbox is a division of Web3 gaming company Animoca Brands, which views itself as advancing digital property rights for the open metaverse.

The strategic funding in the form of convertible promissory notes was led by Kingsway Capital and Animoca Brands, with participation by LG Tech Ventures and True Global Ventures. Noteholders have the ability to convert into equity of Bacasable Global Limited at the same terms as existing preference shares.

Yat Siu, executive chairman of Animoca Brands, said in a statement, “We are deeply honored by the continuing commitment to the vision of The Sandbox, and we’re incredibly excited about the future of composable user-generated content games.”