Thomas Bohner, Founder and CEO at Credix, has confirmed that his team has secured $2.5 million in early-stage seed round funding from various investors and builders.
Credix’s investment round was reportedly led by DRW Cumberland and ParaFi Capital along with contributions from the Transfero Swiss BRZ Solana Ecosystem Fund, Solana Ventures, Parrot Finance, MGNR, Mercurial, Petrock Capital, Fuse Capital, and several angel investors.
Bohner wrote in a blog post that from the very beginning, the Credix team has been “building the bridge between decentralized finance and real-world assets.”
Bohner revealed that they are sharply focused on “bringing uncollateralized loans to the emerging markets, starting with Latin America.” And now, they are pleased to share more details about their product, team, and investors.
Mika Honkasalo, Technical Researcher at ParaFi Capital, stated:
“ParaFi is excited to back Credix in connecting real-world finance with DeFi, and in supporting the team’s mission of improving access to credit and promoting financial inclusion in emerging markets. Credix is tackling an underserved and quickly growing market with FinTechs and non-bank loan originators in Latin America and can help cut down on the inefficiencies in traditional finance.”
Within Latin America (Credix’s start focus), approximately 50% of the consumers are unbanked and credit card interest rates “can reach up to 250% per year.”
Many Fintechs (for example, neobanks, loan originators, lenders, etc.) tap into this market to address these challenges.
The Credix team further noted:
“Unfortunately, they have their own challenges in regard to debt financing. They can’t access the global debt capital markets and local banks will not provide them any financing. Finding funding and liquidity for them is expensive, time-consuming, and the process is extremely bureaucratic.”
They added that crypto -and DeFi are growing steadily. They pointed out that staking, pooling, and farming “allow you to generate positive income on your assets.”
The team at Credix “loves these protocols but they come with their own challenges.”
The update also mentioned that most DeFi products are “built by traders for traders; allowing them to keep exposure to crypto-assets and trade with massive leverage. Borrowing and lending need to be over-collateralized.”
For instance, if you want to borrow $75 worth of USDC (a crypto dollar-backed 1-to-1 by a physical dollar), you “have to put $100 worth of Solana as collateral.”
At Credix, they are building the bridge “between those two worlds.” The development team also noted that “breaking down the barriers of entry, driving adoption, and driving more inclusive capital-efficient access to financing.”
The announcement added that A55 is pleased to “announce its new partnership with Credix.”
The update further noted that “leveraging decentralized finance (DeFi) and blockchain technologies to provide more efficient debt financing and help a55 to scale within Latin America.”
Hugo Mathecowitsch, Founder & CEO, a55
“We are excited about this partnership and the many opportunities of growth.”
Here are the advantages of Credix:
- Credix allows access to high-yielding investment opportunities that are uncorrelated to any crypto volatility and otherwise difficult to invest in
- Credix enables borrowers in emerging markets cheaper, faster, and more efficient access to credit
- Credix kicks off the decentralization of the debt capital markets. Democratizing the investment opportunities and access to capital
For more details on this announcement, check here.