Ledn, a canadian company offering bitcoin-backed loans in Fiat currency, is launching loans in the DAI stablecoin for the development of decentralized Finance (DeFi) in Latin America.
Ledn co-founder Mauricio Di Bartolomeo noted that the new partnership with stablecoin Issuer MakerDAO is driven by demand. He said that more than half of Ledn’s clients are located in Latin America, where the DAI stablecoin is increasingly seen as an alternative to strictly regulated dollar transfers.
Recall that most Latin American countries are now suffering from economic crisis and hyperinflation. For example, over the weekend, the Central Bank of Argentina lowered the limit on buying US dollars to $200 per month per person. Nadia Alvarez, head of business development for MakerDAO in Latin America, said:
“In Argentina, if you receive a Bank transfer in US dollars, the banks immediately convert it to the Argentine peso and you lose money. We know that BTC owners don’t want to sell their bitcoins, but they need liquidity for daily spending. This is why we believe that this proposal is relevant for Latin America.”
Ledn will buy DAI from OTC traders and provide BTC storage for clients. Di Bartolomeo said that customers in various Latin American countries have reported banking problems similar to those in Argentina, so they are turning to DAI. He added that Colombians make up 16% of Ledn’s user base, followed by Venezuelans at 12%.
“Some of our clients have stated that they would like to use stablecoins like DAI to buy additional digital assets. At the same time, other DAI users need access to more financial services,” Di Bartolomeo said.
According to Alvarez, Ledn customers will soon be able to spend DAI stablecoins at retail outlets in Colombia, Venezuela, Argentina and Brazil. MakerDAO is partnering with product supplier Pundi X, which has already started operations in Venezuela, and plans to install cryptocurrency terminals at 750 points of sale in Latin America.
“Loans from Ledn in DAI stablecoins provide an opportunity to get acquainted with the decentralized Finance industry and its capabilities,” Alvarez said.
Note that the DeFi industry is attracting more and more companies. Recently, the decentralized Finance platform Synthetix received $3.8 million from major investors. In addition, Binance and Chainlink said they would develop the industry, and in July, Ontology and Opera teamed up to develop decentralized Finance and applications. In addition, in September, Nasdaq launched an index for the DeFi industry.