Nigerian-based DeFi platform Xend Finance has landed new funding and partnership deals to support its goal of building a strong decentralized financial credit union.
The firm enables cooperatives and credit unions to earn interest on deposits when they are converted to stablecoins. The Binance-backed platform is the first in the country to offer high-interest savings opportunities. The platform was launched in 2019 by Ugochukwu Aronu, Chibuike Aguene, and Chima Abafor.
It enables users to carry out basic transactions when they register and set up an account using their mobile phone. Apart from earning interest on their savings, members can also participate in validating transactions on blockchains.
In November last year, the tech startup received $1.5 million investment funds from Binance Labs, Matic Co-founder, Sandeep Nailwal, TRG Capital, Jun Capital, Ampifi VC, AU21 Capital, as well as Google Developers Launchpad.
More partnership and funding deals for mainnet
The firm will be launching its mainnet next most. According to the firm, the additional funding was acquired to enable a smooth and successful launch of the mainnet.
The company also collaborated with software service provider TechFusion, and the collaboration will allow Xend to make its services available to over 5,000 TechFusion’s credit union members.
Additionally, Xend has also secured new investment funds from investors such as NGC Ventures and Hashey, bringing its total investment inflows in the tech startup to $2 million.
Xend’s chief executive officer Aronu Ugochukwu commented on the recent partnership and funding round. He stated that the partnership will enable corporations and credit unions to easily deposit their funds on the Xend platform, which can be converted to stablecoins. According to him, the platform will provide the opportunity for members to earn high returns from their lending activities through stablecoins.
The new platform offers higher credit returns
The credit unions and corporative at the community and institutional levels will have direct access to the platform, and they can access the platform at any time.
Head of sales and marketing at TechFusion Africa Modupe Jiwalde stated that the new platform is a better deal compared to the traditional method. She said while Xend Finance will enable users to earn as much as 15%, the annual percentage yield for traditional trade unions is only 1%.
The main objective is to prevent low credit-earning of Africans due to unstable economies and local currency devaluation. Ugochukwu pointed out that Nigerians are increasingly using crypto funds as a hedge against inflation. Last week, the country’s Central Bank passed a law asking all banks to identify and close all accounts tied to cryptocurrency operations and platforms.