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We live in a world of growing economic inequality. According to the United Nations 2020 report, 1.3 billion people in 107 developing countries experience deprivation of health, education and living standards because of their economic situation. These people are excluded from the formal economy and trapped in economic conditions with limited access to platforms, products, and services that can empower them to better themselves.
Traditionally, this has been exacerbated at the institutional and corporate level, where capital, technological and legal limitations make it impossible or financially viable to serve this low-end market. is not. However, advances in the fintech sector are rapidly removing many of these barriers, making this market accessible to banks, financial services providers and emerging challengers. On an ethical and human level we can fight poverty by democratizing access to financial services, but on a business level this is also a huge opportunity.
One of the key technologies acting as a catalyst to open up this market is blockchain, which has low operating costs and can operate at scale. Various blockchain projects have emerged that focus on creating pathways for people to spend, store, and transfer money, but one of the best use cases is in the investment space.
A South African-based blockchain called Fraxeum was developed by three experienced tech entrepreneurs and co-founders: Llew Morkel, Khaya Maloney and Barry Tuck. In particular, it allows for extensive micro-investment across a wide range of asset classes.
“Fundamentally, Fraxeum tokenizes equities of any kind of asset, real world or digital, traditional or alternative,” said Barry Tuck, Chief Strategy Officer at Fraxeum, Durban. In addition to blockchain, for simple customers he has developed various fintech solutions that facilitate KYC, AML, onboarding, fiat direct deposits and withdrawals, secondary OTC desks for reselling micro stocks, etc. bottom. ”
The Fraxeum blockchain is an eco-friendly, gas-free, bank-level blockchain that facilitates the creation and management of an accessible and comprehensive investment platform, enabling investments starting at US$0.10. By offering affordable and accessible investment opportunities to this wide range of retail investors currently excluded from the market, the Fraxeum blockchain will help banks, financial service providers and other companies or start-ups access this untapped market. We provide the perfect platform to enter the market. The Fraxeum blockchain facilitates and automates the management of millions of split investment accounts sustainably with zero gas fees.
Khaya Maloney, Head of Business Development at Fraxeum, said: alternative assets. We have clients that allow us to invest in whiskey barrel yields and rare Rolex watches. Another large multinational company is using Fraxeum to tokenize carbon credits and clean energy projects. Other use cases include financing debt, investing in agricultural or mining yields, buying equity in sports teams, franchises, or real estate. ”
Contrary to popular opinion, poverty is not a purely emerging market issue. The same UN report highlights the growing wealth gap globally, with an estimated 10,5% of the US population (34 million people), for example, living in poverty. Access to a highly coveted asset, real estate investment, is becoming increasingly exclusive as millions of people are prevented from investing in real estate due to skyrocketing real estate prices in major cities. increase.
“Using Fraxeum to build a real estate microinvestment platform offers a great solution to this problem,” continues Maloney. This solution is globally relevant and democratizes access to real estate investment opportunities in both established and emerging markets. ”
Although still in its early stages, Fraxeum is poised to change the world of finance as more institutions, banks, and financial service providers begin using blockchain to offer retail investors a wide range of micro-investment opportunities.
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