Xend Finance, a decentralized finance mission backed by Binance and Google, is launching a platform in Africa to supply tokenized entry to international actual property and inventory markets.
Companions in the launch embrace Risevest, a digital wealth administration platform that gives particular person and institutional traders publicity to international markets. The corporate just lately acquired a broker-dealer license in the US.
In response to a Might 30 announcement, the brand new platform will enable customers to speculate in worldwide actual property and inventory markets by buying fractional shares through tokenization. The entry barrier is low, beginning at $5 when traders use stablecoins equivalent to USDt (USDT) and USDC (USDC).
“This partnership with Xend Finance permits us to supply fractional, dollar-based property like actual property and US shares in a seamless, blockchain-powered format,” Risevest CEO Eke Urum mentioned in a press release. “It’s a game-changer for younger Africans seeking to construct wealth securely, transparently, and with out boundaries.”
The platform’s launch comes as Web3 initiatives are more and more taking a look at Africa as a key marketplace for real-world tokenization (RWA).
A few of the ongoing RWA initiatives on the continent are LIDO NATION’s attempt to tokenize and confirm items, Empowa using the Cardano blockchain to tokenize monetary devices in Kenya, and the development of the Africa Tokenization Council.
Xend Finance, based in 2019 and primarily based in Nigeria, constructed its DeFi platform on the BNB Good Chain.
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Crypto in Africa: a rising market
According to Chainalysis’s 2024 Geography of Crypto Report, Nigeria, the place each Xend Finance and Risevest are primarily based, ranks No. 2 out of all international locations in crypto adoption. Different Sub-Saharan international locations — Ethiopia, Kenya, and South Africa — made the highest 30.
The report exhibits that Africans are adopting crypto for quite a lot of causes, together with enterprise funds, as a hedge in opposition to inflation, and for smaller transactions. The continent could profit from crypto’s sensible use instances.
Stablecoins, particularly these pegged to a serious fiat forex just like the US greenback, may be one such use case. Stablecoins act as a hedge in opposition to inflation and permit companies to transact with different companies and even clients at a decrease price. Stablecoins account for 43% of all crypto volume in Sub-Saharan Africa.
RWA tokenization is another use case that may spur crypto adoption in Africa, permitting people to entry the worldwide monetary system.
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