Nigerian startup Xend Finance has publicly launched its decentralised finance (DeFi) platform for credit unions and cooperatives following a US$1.5 million strategic investment round.
Xend Finance, which last year took part in the Google Launchpad Africa accelerator and the Binance Incubation Programme, has developed a platform that gives everyone access to the global money market so members can save and invest in stable currencies.
The Xend Finance platform also allows users to create their own credit unions and cooperatives, eliminating traditional middle men, while earning up to 15 per cent annual percentage yield on their savings.
The startup has launched its platform publicly after raising US$1.5 million in funding from investors including Binance Labs, Google Developers Launchpad, AU21 Capital, Ampifi VC, JUN Capital, TRG Capital, and Sandeep Nailwal, among others.
“Traditional credit unions have a number of limiting drawbacks, including only one per cent annual percentage yield returns,” said Aronu Ugochukwu, the startup’s chief executive officer (CEO). “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.”
User savings can be converted to stable currencies and staked – the process of actively participating in transaction validations on blockchains – on lending platforms so members can earn compound interest on their money. A Xend token will also be introduced to further ensure a decentralised governance on the Xend Finance platform, while also incentivising members even more on their savings. The startup will be one of the first companies to build on Binance Smart Chain, and the first out of Africa.
“Along with Google, we were very impressed with the team at Xend Finance,” said Kenzi Wang, partner at AU21. “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.”