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Xend Finance, a Nigerian tech startup has launched the first decentralised finance (DeFi) platform that allows users to save and invest in stable currencies in the global market without the need for a traditional middle man in the country.
In addition, the West African startup has secured a $1.5-million investment round from Binance Labs, Google Developers Launchpad, AU21 Capital, Ampifi VC, JUN Capital, TRG Capital, and Matic Co-founder, Sandeep Nailwal.
Credit Unions benefit from new DeFi platform launch with $1.5 million investment funding round
In an official press release, Kenzi Wang, Partner at AU21 commends the Xend Finance team for building their network to infiltrate into the finance industry.
“Along with Google, we were very impressed with the team at Xend Finance. They’ve already built a network of 55 000 users and are tackling a trillion-dollar industry that is perfectly suited for DeFi disruption. The Xend Finance product protects people’s savings in developing countries by giving them access to stable currencies on the global money market.”
The Xend Finance platform gives users the opportunity to create their own credit unions as well as cooperatives which will allow them to earn up to 15% annual percentage yield on their savings.
Aronu Ugochukwu, CEO of Xend Finance explains that the company uses technology that eliminates drawbacks presented in other credit unions.
“Traditional credit unions have a number of limiting drawbacks, including only 1% annual percentage yield returns. 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”
A first for Nigeria
Xend Finance is a platform that offers tools to members that will contribute to the building of a decentralised financial credit union. The platform was founded in 2019 by Chima Abafor, Chibuike Aguene, and Ugochukwu Aronu.
The platform allows users to perform basic transactions after registering and setting up an account using their mobile phone.
Members can earn compound interest on their savings as it can be converted into stable currencies as well as participate in validating transactions on blockchains. Blockchains is a digital ledger that identifies records as blocks which are then used to record transactions across a variety of computers.
Xend Finance is the first company out of Africa to build on Binance Smart Chain.
A Xend token is a feature that will be introduced in the future to decentralise governance on the Xend Finance Platform and encourage members to convert their savings to currencies and earn compound interest.
The Xend Finance team consists of mathematics, finance, cryptocurrency, and blockchain development professionals who work for employers such as KPMG, Chevron, and Stanbic Bank. Early supporters included Google Developers Launchpad and Longhash Ventures.
Shi Khai Wei, Chief Operating Officer at LongHash Ventures solidifies their support in Xend Finance as a company that creates innovative solutions to accelerate the financial system.
“Xend Finance is an ambitious progression from the impressive suite of services already offered to SMEs such as payments, inventory management, and business intelligence. As a leading blockchain accelerator, we are always excited to support teams who work towards solving real pain points and building a more inclusive financial system. As blockchain spurs financial inclusion around the world, Xend Finance is beyond doubt part of the vanguard to wrought change.”
Featured image: Austin Distel via Unsplash