Xend Finance, a Nigeria-based decentralized finance (DeFi) platform for credit score unions and cooperatives, has secured new companions and fundin
Xend Finance, a Nigeria-based decentralized finance (DeFi) platform for credit score unions and cooperatives, has secured new companions and funding because it prepares for its bid to carry high-interest financial savings alternatives to Africa.
Set to launch its mainnet in March, the agency introduced Tuesday that it has partnered with software program service supplier TechFusion Africa and can make its providers out there to TechFusion’s 5,000 credit score union members. Xend has additionally secured new traders led by NGC Ventures and Haskhey, bringing whole funding within the firm so far to $2 million.
The Xend platform launch was introduced in November 2020, alongside a $1.5 million strategic funding spherical. The platform is backed by Binance, Google Launchpad and others.
In keeping with Xend CEO Aronu Ugochukwu, credit score unions and cooperatives can deposit their funds on the platform, the place they are going to be transformed to stablecoins – cryptocurrencies backed by conventional belongings just like the U.S. greenback.
“We’ve created a platform to allow cooperatives and credit score unions to earn excessive yields by stablecoins,” Ugochukwu informed CoinDesk.
Credit score unions each on the institutional and neighborhood ranges can have entry to the platform and, by saving credit score union funds in stablecoins, these teams can earn increased curiosity, he mentioned.
“Historically, credit score unions supply an rate of interest of 1% annual share yield in comparison with the attainable 15% out there by Xend Finance,” mentioned Marilyn Modupe Jiwalde, head of gross sales and advertising and marketing at TechFusion Africa.
The aim is to assist shield the earnings of African residents from native forex devaluations and unstable economies, Ugochukwu mentioned, pointing to Nigeria, the place individuals are utilizing crypto as a hedge in opposition to inflation. A Bloomberg survey of traders and analysts concluded that Nigeria’s central financial institution might devalue the native forex, the naira, by as a lot as 10% in 2021.