Credix raised a $2.5 million seed round to build an enterprise graded DeFi credit marketplace, connecting fintechs in emerging markets with investors globally. Transfero participated the fundraising with other companies. By bringing uncollaterlized loans to the Solana ecosystem, it’s democratizing credit investing with a positive and social impact.
DRW Cumberland and ParaFi led the round and were joined by Solana Ventures, Transfero, Petrock Capital, Fuse Capital, MGNR, Mercurial, and Parrot, combining a wide range of smart capital.
Credix is set to go live as of January 2022, providing debt funding to four credit fintechs and already committing to fifteen others across LatAm. By staking in USDC, investors eliminate crypto volatility. Additionally, the firm is planning to support BRZ and launch its Credix token next year.
How does Credix marketplace work
Borrowers, credit fintechs and non-bank loan originators in emerging markets are able to borrow up to $20M USDC using their off-chain loan book as collateral, which they can in return lend to their clients in their local currency. This in a digital manner, reducing lead times by up to 80% and at a significantly lower rate.
Underwriters, institutional and qualified investors are able to invest in the fintech credit deals’ junior tranche on a case-by-case basis, receiving high yield returns. Liquidity providers, institutional and retail investors on the other hand, stake in the liquidity pool, which acts as a fund allocated over the different deals’ senior tranches, diversifying the risk.
“We firmly believe that blockchain technology has the vast potential to disrupt the global debt capital markets. By bridging the world of decentralized finance with real-world assets, we can unlock huge value for the market. Credit in emerging countries costs up to 250% a year. With the confidence and commitment of our investors, we will be even better positioned to accelerate our mission to democratize credit investing with a positive impact.” – Thomas Bohner, Founder & CEO, Credix
The company is planning to open up the liquidity pool during H1 of 2022, providing early access to their growing community.