Axios Pro: Fintech Deals

September 06, 2022

Axios Pro Exclusive Content

Welcome back from Labor Day weekend, Fintech readers.

1 big thing: Blockchain loans for emerging markets

Illustration of a glowing blockchain block with cash inside.

Illustration: Gabriella Turrisi/Axios

Credix Finance, a blockchain-based loan financing platform for emerging market fintechs, raised $11.25 million in funding led by Motive Partners and Parafi Capital, Ryan writes.

Why it matters: By putting loan financing on the blockchain, Credix is hoping to provide more transparency and better access to capital for borrowers in emerging markets.

How it works: Credix created a platform to connect institutional investors like hedge funds, asset managers and family offices with fintech borrowers in emerging markets looking for access to capital.

  • Each loan is put on the blockchain and funded in USDC, which can then be converted into the borrower's local currency, and repayment is also done on-chain.
  • Investors can choose to analyze and underwrite loans individually or back a liquidity pool that combines several deals on the platform.
  • To date, Credix has processed over $20 million in financing for Brazilian fintech firms such as A55, Provi, Tecredi, Descontanet, Divibank and Adiante.

Between the lines: “The moment our borrowers tokenize their debt, we create an on-chain bond where you can see all the terms: the interest rate, term to maturity, different tranches of that bond, and how the pricing is calculated,” Credix CEO Thomas Bohner tells Ryan.

What's next: The company plans to use the funding to expand beyond Brazil, its first market, into countries like Mexico and Colombia.

  • But beyond that, the bigger vision is to democratize access to financing.
  • “We're already doing that on the borrower side by providing these fintechs in emerging markets better access. But in the long term, we also want to provide access to retail investors to invest in these kinds of asset classes and products,” Bohner says.

Of note: Other investors in the round include Valor Capital Group, Victory Park Capital, MGG Investment Group, Circle Ventures, Abra, Fuse Capital, Claure Group and Itau LatAm chairman Ricardo Villela Marino.

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