Xend Finance, a decentralized finance project backed by Binance and Google, is launching a platform in Africa to provide iconic access to global real estate and stock markets.
Partners for the launch include Risevest, a digital wealth management platform that provides individual and institutional investors with exposure to the global market. The company recently obtained a broker-dealer license in the US.
According to a May 30 announcement, the new platform allows users to invest in international real estate and stock markets by purchasing fractional shares via tokenization. The barrier to entry is low, starting at $5 if investors use Stablecoins such as USDT (USDT) or USDC (USDC).
“The partnership with Xend Finance allows us to deliver fractional dollar-based assets, such as real estate and US stocks, in a seamless, blockchain-driven format,” Risevest CEO Eke Urum said in a statement. “It’s a game changer for young Africans trying to build wealth safely, transparently and without barriers.”
https://www.youtube.com/watch?v=av4beooajdg
The launch of the platform is because Web3 projects view Africa as a key market for real-world tokenization (RWA).
Some of the ongoing RWA projects on the continent are the development of the Empois Africa Tokenization Council, attempts to tokenize and verify Lidonation products, using the Cardano Blockchain for the deployment of financial products in Kenya.
Founded in 2019 and based in Nigeria, Xend Finance has built its Defi platform on the BNB Smart chain.
Related: How African innovators use blockchain to solve real problems
Africa’s Cryptocurrency: Growth Market
According to ChainAlysis’s 2024 Crypto Report geographic report, Nigeria is ranked second in all countries in crypto adoption, with both Xend Finance and Risevest being based. Other sub-Saharan countries in Ethiopia, Kenya and South Africa won the top 30.
The report shows that Africans employ crypto for various reasons including business payments, hedging against inflation, and small transactions. The continent could benefit from actual use cases of cryptography.
Those who are locked into major Fiat currencies like the stubcoins, especially the US dollar, may be one such use case. Stablecoins act as hedges against inflation, allowing businesses to trade with other companies and even customers at a low cost. Stablecoins account for 43% of all sub-Saharan Africa’s crypto volume.
RWA tokenization is another use case that could drive the adoption of crypto in Africa, allowing individuals to access the global financial system.
Magazine: Tradfi is building Ethereum L2 to tokenize trillions in rwas – Internal Story
