Credix raises €11m for DeFi emerging market investment platform

Belgian fintech Credix has raised €11.32m for its platform, which promises to connect institutional investors, such as hedge funds and alternative asset managers, with emerging market debt.

The platform uses USDC stablecoin and smart contracts to connect these institutional investors with credit fintechs and non-bank lenders in Latin America while handling the underwriting itself, which it claims minimizes investor risk.

At the moment, the platform is only available in Brazil, however, the firm said it expects to launch in Mexico and Colombia by the end of 2022.

The Series A round was led by Motive Partners’ Early Stage fund and ParaFi Capital.

Valor Capital, MGG Bayhawk Fund, Victory Park Capital,Circle Ventures, Fuse Capital and Abra also joined the round.

Credix said the capital will be used to advance its technology, invest in new talent, and scope out new opportunities with institutional investors 

Fintech in the Latin American region is continuing to attract investment.

According to statistics by the Association for Private Capital Investment in Latin America (LAVCA) fintech startups were overwhelmingly the most popular destinations for fintech funding in the first quarter of 2022

Fintech attracted 43 per cent of all the capital raised in the region, with $1.2 billion in total having flowed into the category. 

But that’s not the only investment trend which Credix is benefiting from.

Despite many digital assets trading well below their historical highs, investors are still pouring money into DeFi platforms. 

According to figures from CoinTelegraph, 1,139 DeFi and Web3-related deals have been struck this year, an impressive rise from the 1,348 made in 2021. 

Credix founder and CEO Thomas Bohner boldly predicted that: “within the next decade, debt capital markets will be on-chain and democratised”.

Bohner went on to say that his firm building underlying infrastructure that is allowing this to happen “at scale”.