Key Points:
- Num Finance raises $1.5M, expands stablecoins in Latin America and Middle East.
- Stablecoins are in demand in emerging regions with frail financial systems, such as Latin America.
- Num Finance offers collateralized loans in local currency stablecoins to businesses in emerging markets, historically underserved by traditional financial institutions.
Num Finance, a decentralized finance (DeFi) protocol, has recently announced that it has raised $1.5 million in a funding round.
The protocol intends to use the raised funds to expand its stablecoin offerings in Latin America and the Middle East. Investors in the protocol’s pre-seed round include Reserve, a stablecoin developer, H2O Scouter Fund, a digital asset investor, Ripio Venture, an investment arm of an Argentine crypto firm, VC3 DAO, a decentralized venture fund, and Matias Woloski, Auth0’s chief technology officer.
The company plans to expand its stablecoin offerings by introducing tokens that are pegged to the Brazilian real, Colombian peso, Mexican peso, and Bahrain dinar within the next month. Additionally, Num Finance will focus on growing its real-world asset offering, starting with the tokenization of money market financial instruments. This will allow the company to offer better financial services to businesses in emerging markets, which have been historically underserved by traditional financial institutions.
The increasing demand for stablecoins in emerging regions with frail financial systems, such as Latin America and Turkey, is driving the growth of the stablecoin market. Stablecoins are commonly used as a means of sending remittances and storing value. They anchor their price to an external asset, usually a government-issued fiat currency, and enable cheaper and faster transactions using blockchain technology. Despite their growing adoption in developing countries, U.S. dollar-denominated stablecoins still represent roughly 99% of the combined supply.
Num Finance offers collateralized loans in local currency stablecoins to businesses in emerging markets. Currently, the protocol issues Argentine peso and Peruvian sol stablecoins. With the additional funding, Num Finance will be able to expand its services to more countries and offer more financial services to businesses in emerging markets.
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Coincu News
Source: https://news.coincu.com/189330-num-finance-secures-1-5m-for-stablecoin/