Why We Invested: Xend Finance

At AU21 Capital, we are excited to announce our recent partnership with Xend Finance, an innovative protocol to integrate DeFi into Credit Union and Cooperative structures to generate higher yields and enable worldwide access to financial products. In decentralizing the means by which capital is stowed within these structures, Xend affords users in developing nations two critical advantages over existing institutions, liquidity and stability.

When Currencies Falter, Finance Fails

There is little debate that economic stability remains out of reach for billions worldwide. Without the presence of a consistent store of value, and lacking access to a wide gamut of currencies, enterprises and individuals living in emerging markets are faced with no choice but to transact using currencies whose inflation rates far outweigh available interest rates. Additionally, Banks and Credit Unions in developing nations chronically lack the geographic scale, liquidity, accessibility and deposit insurance that foster consumer trust in the financial system. Resultantly, depository institutions lose purpose in their local economies, and growth stutters as lending opportunities evaporate and savings shed buying power.

Xend Finance — A Beacon of Economic Empowerment

Xend’s asset management chassis is an elegantly simple DeFi tool constructed on the Binance Smart Chain. Users anywhere on the globe can connect to the perpetually active cross-chain Credit Union to deposit their savings. Then, users may convert their assets among fiat and digital currencies, and participate in staking to generate a real-term yield. Assets on the chain are insured, and governance is conducted through the $XEND naitive token.

We are very impressed with the sophistication and adoption of Xend’s existing payments platform, and are thrilled to work alongside Xend Finance as they disrupt the Credit Union market and pave the way for unprecedented financial accessibility in emerging markets.