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Emurgo, the financial arm of Cardano, a major cryptocurrency project, announced to invest $100 million in the creation of decentralized finance-based projects for the ecosystem.
For this purpose, the firm will establish two subsidiaries, one of which will be solely dedicated to rewarding the formation of African companies that use the Cardano blockchain in the development of their goods.
Cardano To Invest $100 Million To Create DeFi Projects
Emurgo, Cardano's financial arm, intends to invest $100 million to two new investment entities to jumpstart the creation of Cardano-related goods. The subsidiaries will have distinct priorities, but they will both help to expand the Cardano ecosystem.
The first, Emurgo Ventures, will be in charge of giving initial investment to promising firms that use Cardano in the development of their products.
These products might include NFT platforms and decentralized finance (DeFi) platforms, which would take advantage of the newly developed capabilities enabled by the Cardano blockchain.
Ken Kodama, CEO of Emurgo, stated:
“We are more focused than ever on accelerating the development of Cardano’s ecosystem with a rich mix of decentralized services catering to a global community that is increasing in overall blockchain awareness.”
Putting Africa First
Cardano's advocates have a clear goal: to be the first to capitalize on Africa's potential for embracing cryptocurrency-based solutions.
This is because the region suffers from financial inefficiencies and has a high proportion of unbanked inhabitants.
To address this need, Emurgo has established Emurgo Africa as its second affiliate. This subsidiary's objective is to assist 300 businesses in the region through seed investment and incubation to make Cardano one of the most widely utilized chains in the region.
According to comments, this financing will prioritize initiatives that employ Cardano to deliver socially beneficial solutions above other types of projects.
All of these solutions are aimed at establishing a vibrant decentralized finance ecosystem that makes use of the new smart contracts features released by the chain with the Alonzo hard fork earlier this month.
The objective is to create a thriving DeFi ecosystem that can compete with other solutions that are already well-known through their platforms, such as Ethereum, Solana, and Avalanche.