The words of Aronu Ugochukwu, the CEO of Xend Finance while highlighting the benefit of the platform to traditional credit unions, were such that will give more than just a glimmer of hope to individuals, startups, and entrepreneurs within the crypto space and even those with intentions to delve into it.
He said: “Unlike credit unions, Xend Finance is not limited by low liquidity, geographic location, neither is it limited by the absence of deposit insurance.
Our groundbreaking technology fixes these problems, and is safe, secure, open to all, and transparent”
His platform, Xend Finance received huge backing from Binance Labs, the venture arm of Binance that grows the blockchain and crypto ecosystem, while launching and publicising a $1.5 million strategic investment round.
Xend Finance plans on using decentralised finance (DEFI), as its avenue in targeting cooperatives and credit unions into the mainstream with the announcement of this $1.5 million strategic investment round.
Key participants present at the funding round were TRG Capital, Ampifi VC, AU21 Capital, JUN Capital, and Sandeep Nailwal (co-founder at Matic).
The team at Xend Finance comprises experienced mathematicians, individuals in finance, blockchain engineers, and cryptography experts.
Here is how it works
According to a share on Medium, the DeFi ecosystem brings solutions to the traditional financial system, accessibility, increasing security and transparency, and an increase in value addition.
As Credit Unions and Cooperatives remain a traditional industry valued at over $1.4 trillion, the industry surpasses all operations done by regular banks whether borrowing, savings, or lending.
The biggest challenges to the sector are in form of low Annual Percentage Yields (APY), geographical constraints, and caps on who can or cannot become a member of an institution.
Deposits made to these Credit Unions and Cooperatives are hardly ever insured creating occasional liquidity challenges.
It is also worth noting that Xend Finance is built on Binance Smart Chain that supports logical complexities, security, low fees, messaging, and cross-chain asset transfers.
L-R; Chibuike Aguene; Ugochukwu Aronu and Chima Abafor (Xend Finance cofounders)
Don’t miss important articles during the week. Subscribe to techbuild weekly digest for updates.