Web3 innovation is growing rapidly, especially in Southeast Asia. This is because the region has spent significant time accelerating its digital transformation, using inclusive technologies for the social and financial betterment of the region’s population.
More than 600 crypto and blockchain startups are currently headquartered in Southeast Asia, according to a recent report by venture capital fund White Star Capital.
A consortium of crypto, blockchain and Web3 projects has collectively raised more than $1 billion in venture capital in the first quarter of 2022, with volumes expected to set new records by the end of the fiscal year.
Adding to this growing influx of venture capital is Bluejay Finance – the Asia-focused multi-currency stablecoin protocol. The platform is focused on bringing a new set of stablecoins to the decentralized finance (DeFi) market.
These stablecoins will be pegged to other currencies and not just the United States Dollar (USD). Bluejay Finance’s initiative to challenge the dominance of USD-pegged stablecoins across the DeFi landscape has caught the attention of investors. This helped the team raise $2.9 million during its most recent funding round.
Blockchain and Web3 investment firms including Zee Prime Capital, RNR Capital, C2 Ventures, Daedalus Angels, Oval Ventures, Stake Capital Group, Moonlanding Ventures and many others, as well as DeFi projects like Alpha Venture DAO, Flux, Ribbon Finance and Voltz, support the Bluejay Finance project.
Julien Bouteloup, founder of Stake Capital Group, supports the project and states: “Over the past few years, stablecoins have emerged as fundamental primitives within DeFi. However, most stablecoins have revolved around the USD.
For crypto to branch out into use cases like real-world payments and money markets, it needs to have stablecoins that people in local economies can seamlessly transact with, such as B. the euro and the Singapore dollar. Bluejay is positioned to meet this need, which will continue to grow as DeFi matures.”
Multi-currency stablecoins are arriving
Stablecoins will continue to play a key role in the decentralized finance ecosystem, especially in emerging markets like Southeast Asia. According to the latest data, nearly 60% of Southeast Asians have either no or insufficient bank accounts, while nearly 70% of Southeast Asian workers are unbanked.
Accordingly, DeFi can help circumvent these obstacles and drive greater financial inclusion. Additionally, the proliferation of smartphones and internet access across the region has opened up even more opportunities for Web3 and DeFi projects.
However, most of the existing stablecoins are focused on the USD, making it difficult to use in a region where transactions are denominated in local currencies. Since every stablecoin is pegged to USD, Southeast Asian users have no choice but USD. This exposes them to additional costs and forces them to use a currency they are unfamiliar with.
To overcome this hurdle, the Bluejay Finance team will support the issuance of stablecoins pegged to various currencies around the world, lowering exchange rate barriers for businesses and individuals in Southeast Asia.
The launch of multi-currency pegged stablecoins is expected to help mitigate exchange rate risk while improving access to capital and making payments more efficient.
Sherry Jiang, the founder of Bluejay Finance, concludes: “The DeFi summer was the first wave of innovation fueled by yield farming. Despite the current state of the market, we are incredibly optimistic that the next cycle will be fueled by sustainable, real-world use cases that solve a real need.
“As such, Bluejay remains focused on building products and partnerships that will enable these sustainable use cases of stablecoins that will bring the next billion users to DeFi.”
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