Asian Stablecoin protocol Bluejay Finance Raises $2.9M
The protocol aims to make crypto more inclusive by issuing stablecoins pegged to the Singapore dollar and Philippine peso.
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Bluejay Finance raised $2.9 million in its latest funding round.
Highlighting Financial Inclusion in Asia
Bluejay Finance, a capital-efficient decentralized protocol that issues stablecoins pegged to real-world currencies, has raised $2.9M in funding from Zee Prime Capital, C2 Ventures, Stake Capital Group, RNR Capital, Daedalus Angels, Moonlanding Ventures, Oval Ventures, and more, with operator-angels including decentralized finance (DeFi) projects like Ribbon Finance, Flux, Voltz, and Alpha Venture Dao. Pre-seed investors include Entrepreneur First and Global Founders Capital.
Founded in 2021, Bluejay Finance aims to offer more stablecoin options to investors than the current USD-backed ones in the DeFi space. It plans to use its funds for team development and stablecoin deployment, focusing on Asian currencies, such as the Singapore dollar and the Philippine peso, and will distribute these stablecoins through DeFi protocols, decentralized exchanges, centralized exchanges, and fintech companies. In doing so, this will allow Asian investors to have a more inclusive and familiar medium of exchange. It will also limit foreign exchange risk and exchange fees.
With 60% of Southeast Asians and 70% of the Southeast Asian workforce being underbanked or unbanked, there’s a clear need to prioritize financial inclusion. Often, there’s been a lack of formal credit history hindering access to capital for small enterprises, and a general lack of urgency and awareness around possessing a personal savings account.
Fortunately, there have been recent opportunities for Asia, thanks to the region’s strong mobile penetration driving a variety of financial services and payment gateways for both individuals and businesses.
Stablecoins can play a meaningful role in the future of financial services in Asia. However, most stablecoin solutions are centered around USD and are not suitable for real world usage where transactions are denominated in local currencies; this means that users are obliged to have exposure to the USD in the DeFi space, which exposes users to extra costs and forces them to use unfamiliar currency.
By having stablecoins of different currencies around the world on the blockchain, Bluejay Finance lowers the barrier for businesses and individuals in these countries to transact and minimizes currency exchange risk, making payments and access to capital easier and more efficient.
Bluejay Finance founder, Sherry Jiang, stated:
“DeFi summer was the first wave of innovation, driven by yield farming. Despite the current state of the markets right now, we are incredibly bullish that the next cycle will be driven by sustainable, real use cases that solve a true need. Therefore, Bluejay remains focused on building products and partnerships that will enable these sustainable use cases of stablecoins and bring in the next billion users into DeFi.”
Recently, Bluejay Finance announced its partnership with Silta Finance, a protocol focused on sustainable real world assets, and plans to announce more partnerships in the coming weeks on both its Twitter and Discord communities.
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