Tech in Africa
Xend Finance, backed by Binance Labs made public the launch of its $1.5 million strategic investment round.
The Nigerian crypto startup plans to bring decentralized finance (DEFI) targeting cooperatives and credit unions into the mainstream. Today they announced a $1.5 million strategic investment round. Key participants during the funding round were AU21 Capital, TRG Capital, JUN Capital, Ampifi VC, and Sandeep Nailwal (co-founder at Matic).
The team at Xend Finance comprises experienced finance, mathematicians, blockchain engineers, and cryptography experts.
How it works
According to a share on Medium, the DeFi ecosystem introduces solutions to the traditional financial system increasing security and transparency, accessibility, and an increase in value addition.
Given Credit Unions and Cooperatives remain a traditional industry valued at over $1.4 trillion, the industry outperforms all operations done by regular banks whether borrowing, savings, or lending.
The biggest challenge to the sector is geographical constraints, low Annual Percentage Yields (APY), and caps on who can or cannot become a member of an institution. Deposits made to these Credit Unions and Cooperatives are hardly ever insured creating occasional liquidity challenges.
It’s worth noting that Xend Finance is built on Binance Smart Chain that supports logical complexities, security, low fees, messaging, and cross-chain asset transfers.
Aronu Ugochukwu the CEO of Xend Finance gave a statement highlighting the benefit of Xend Finance to traditional credit unions. “Unlike credit unions, Xend Finance is not limited by geographic location, low liquidity, or absence of deposit insurance. Our groundbreaking technology fixes these problems and is safe, secure, open to all, and transparent.”
