Decentralized finance (DeFi) protocol Num Finance has raised $1.5 million in a funding round to expand its stablecoin offering in Latin America and the Middle East, a press release announced Tuesday.
Investors in the protocol’s pre-seed round include stablecoin developer Reserve, as well as digital asset investor H2O Scouter Fund, Argentine cryptocurrency firm investment arm Lipio Ventures, decentralized venture fund VC3 DAO, and Auth0. including Chief Technology Officer Matthias Woloski.
Num Finance has announced that it will expand its stablecoin offering within the next month with tokens pegged to the Brazilian real, Colombian peso, Mexican peso and Bahraini dinar. The company will also focus on expanding its real-world asset offering, starting with the tokenization of money market financial instruments, the press release added.
The expansion of the protocol comes as stablecoins, a subset of $130 billion worth of digital assets, are in high demand in emerging regions with weak financial systems, such as Latin America and Turkey. Cryptocurrency research firm Chainaysis reports that people are using these tokens as a means of transferring money and storing value.
A stablecoin locks its price to an external asset (usually a government-issued fiat currency) and uses blockchain technology to enable cheaper and faster transactions. CoinGecko data shows that despite growing adoption in developing countries, USD-denominated stablecoins dominate the market, accounting for about 99% of total supply.