thenewscrypto.com
To issue stablecoins tied to real-world currencies, Bluejay Finance, a capital-efficient decentralized stablecoin protocol, has secured $2.9M in investment from Zee Prime Capital, C2 Ventures, Stake Capital Group, RNR Capital, Daedalus Angels, Moonlanding Ventures, Oval Ventures, and others. Operator angels include DeFi enterprises like Ribbon Finance, Flux, Voltz, and Alpha Venture Dao.
Bluejay Finance was founded in 2021 and promises to provide investors with more stablecoin alternatives based on currencies other than the USD in the DeFi market. Aiming for Asian stablecoins like the Singapore Dollar and the Philippine Peso, it wants to utilize its capital for team growth and stablecoin deployment. It would distribute the stablecoins through partners, including DeFi protocols, decentralized exchanges, centralized exchanges, and fintech organizations. A more inclusive and familiar means of exchange that reduces foreign exchange risk and costs may be achieved.
Highlighting Financial Inclusion in Asia
Even though 60 percent of Southeast Asians are either under or unbanked, there is a clear need to focus on financial inclusion. A lack of formal credit history and a general lack of urgency and understanding about possessing a personal savings account are often obstacles to MSMEs’ access to capital.
Although there have been some recent prospects for Asia due to the increased mobile adoption in the area, there are still many challenges ahead.
Improving Financial Inclusion with Asia-focused Stablecoins
Financial services in Asia might benefit from the use of stablecoins. As a result, most stablecoin solutions are based on the US dollar and are unsuitable for real-world use in countries where transactions are denominated in local currencies. This means that users are exposed to additional costs, forcing them to use foreign currency because they have no choice.
Bluejay Finance reduces the barrier for companies and people in these nations to interact. It eliminates currency exchange risk, making payments and access to money simpler and more efficient by having stablecoins of numerous currencies on the blockchain.
Sherry Jiang, the founder of Bluejay Finance, stated:
“DeFi summer was the first wave of innovation, driven by yield farming. Despite the current state of the markets right now, we are incredibly bullish that the next cycle will be driven by sustainable, real use cases that solve a true need. Therefore, Bluejay remains focused on building products and partnerships that will enable these sustainable use cases of stablecoins and bring in the next billion users into DeFi.”
Julien Bouteloup, founder of Stake Capital Group, comments:
“Over the course of the past few years, stablecoins have proven to be a fundamental primitive within DeFi. However, most stablecoins have revolved around the US dollar. For crypto to branch 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 the Euro and Singapore Dollar. Bluejay is positioned to address this need, which will only continue to grow as DeFi matures.”
Bluejay Finance revealed a relationship with Silta Finance, a protocol focusing on long-term real-world assets. The company hopes to make other announcements about partnerships on its Twitter and Discord communities in the coming weeks.