In a significant boost for cryptocurrency use in Latin America, El Dorado, the Colombia-based stablecoin protocol, has successfully completed a seed venture capital investment round, securing $3 million to build a “superapp” geared toward crypto payments throughout the region. El Dorado is answering a growing demand for alternatives to traditional banking and financial services, leveraging the unique benefits of blockchain technology and stablecoins.
MultiCoin Capital was at the forefront of this investment round, demonstrating its belief in the potential for stablecoin-powered solutions in emerging markets. They were joined by notable investors like Coinbase Ventures, UC Berkeley Skydeck, and Awesome People Ventures, creating a robust financial backing for El Dorado’s ambitious project.
Stablecoins present a $160 billion asset class within the larger crypto marketplace. These digital currencies are pegged to external assets, like the U.S. dollar, ensuring price stability – a crucial feature that makes them an attractive financial mechanism in regions plagued by currency devaluation. Latin America, with its less developed banking infrastructure, finds particular value in the stability and accessibility offered by stablecoins.
Guillermo Goncalvez, the co-founder and CEO of El Dorado, points out that inflation and exorbitant currency exchange fees have historically impeded Latin Americans’ ability to preserve or cultivate their wealth. Responding to these challenges, El Dorado’s platform offers a beacon of hope. The company has established a presence in six countries, delivering a more economical alternative for cross-border payments and financial transactions. Utilizing blockchain as a payment rail, El Dorado imposes a mere 0.6% fee for cross-border transactions – a significant reduction compared to traditional financial institutions.
El Dorado’s ambitions are matched by its technological infrastructure. The app supports a variety of stablecoins, including Tether’s USDT, Circle’s USDC, and Celo Dollar (cUSD) across various networks. It also facilitates bitcoin transactions. In the past year alone, the platform has seen over one million transactions, signaling a robust and growing user base that appreciates the cost-efficiency and convenience of El Dorado’s services.
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The capital injection into El Dorado heralds a promising future for crypto in Latin America. It underlines the trust and confidence investors have in stablecoin applications, and it sets the stage for greater financial inclusion and innovation within the region. As El Dorado propels ahead with its superapp, the impact of its services could be transformational, providing a reliable and cost-effective financial tool for millions.
