Num Finance, a blockchain-based financial services provider, has raised $1.5 million in a funding round led by Reserve, tje H2O Scouter Fund, the Argentine crypto firm Ripio’s venture arm, VC3 DAO, and Matias Woloski, CTO of Auth0.
The company plans to use the funds to expand its stablecoin offerings in Latin America and the Middle East. Stablecoins are cryptocurrencies that are pegged to a stable asset, such as the US dollar, to reduce volatility. They are becoming increasingly popular as a means of payment and a store of value, particularly in countries with unstable currencies.
Num Finance currently offers two stablecoins: NumUSD, which is pegged to the US dollar, and NumMXN, which is pegged to the Mexican peso. The company plans to launch additional stablecoins pegged to other currencies in the regions it serves. The expansion of stablecoins in Latin America and the Middle East could have significant implications for the global financial system. These regions have historically been underserved by traditional financial institutions, and stablecoins could provide a more accessible and efficient means of conducting transactions.
However, there are also concerns about the potential risks associated with stablecoins. Some experts worry that stablecoins could be used for illicit activities, such as money laundering and terrorist financing. There are also concerns about the stability of the assets that stablecoins are pegged to, particularly in the event of a financial crisis. Despite these concerns, the demand for stablecoins is likely to continue to grow. As more people around the world become interested in cryptocurrencies, stablecoins offer a way to participate in the market without the risk of volatility. Num Finance’s funding round is just the latest example of the growing interest in stablecoins. Other companies, such as Tether and USD Coin, have also seen significant growth in recent years. As the use of stablecoins continues to expand, it will be important for regulators to develop clear guidelines and regulations to ensure that they are used in a safe and responsible manner. This will require collaboration between governments, financial institutions, and blockchain companies.