The digital assets space is constantly evolving, with new technologies and innovations reshaping the financial landscape. Among these developments, the emergence of stablecoins has gained significant attention. While the majority of stablecoins are pegged to the USD, there is a growing demand for non-USD stablecoins that cater to specific regions and emerging markets.
At Num Finance, our mission is to address the challenges faced by individuals and businesses in emerging markets through the issuance of stablecoins. These stablecoins are designed to provide a secure and reliable digital asset that mitigates the effects of volatility and inflation. By leveraging blockchain technology, we aim to empower individuals and businesses in these regions with accessible and efficient financial solutions.
Use Cases for Non-USD Stablecoins
FX Trading: Non-USD stablecoins offer a significant opportunity for foreign exchange (FX) trading. By tokenizing fiat currencies, such as the Euro or Singapore Dollar, on blockchain networks, individuals and businesses can benefit from increased liquidity, and 24/7 trading. This opens up new possibilities for AMMs (Automated Market Makers) and decentralized exchanges to facilitate FX trading, attracting traditional traders and potentially boosting trading volumes.
Remittance: The traditional banking system has long been a barrier to seamless and affordable cross-border remittance. Non-USD stablecoins can provide a solution by enabling faster and more cost-effective remittance options. With a vast remittance market worth billions of dollars annually, stablecoin-based remittance rails have the potential to revolutionize the way money is moved across borders. This can greatly benefit individuals and families in countries heavily reliant on remittances for their livelihoods. The Num Network is ready to be a vital solution for LATAM. With our current stablecoins pegged to the Argentinian Peso, to the Peruvian Sol, and very soon to the Colombian Peso, and the upcoming launch of stablecoins pegged to the Mexican Peso and Brazilian Real, we are paving the way for financial stability and innovation in the region.
Financial inclusion & quality finance tools: Non-USD stablecoins have the capacity to promote financial inclusion in regions where traditional banking services are limited or unavailable. By democratizing access to financial services, these stablecoins empower individuals and businesses with liquidity solutions and attractive yields. In many emerging markets, the difficulties of accessing traditional banking services hinder individuals from obtaining loans or participating in lending activities. However, through the tokenization of money markets and the utilization of non-USD stablecoins, these barriers are dismantled, providing businesses and users with the opportunity to scale and thrive.
An Expansive Market to Leverage
Beyond the use cases mentioned, tokenization presents a tremendous opportunity for the financial industry as a whole. According to industry projections, the market for tokenized assets, led by stablecoins, could reach a staggering $5 trillion by 2025. This growth is driven by the numerous benefits tokenization and local stablecoins brings. By digitizing real-world assets and representing them as tokens on blockchain networks, the potential for unlocking previously illiquid markets becomes a reality. Stablecoins, with their stability and fiat currency backing, play a pivotal role in driving this tokenization revolution, enabling individuals and institutions to access a vast array of assets and yield opportunities.
As the demand for stablecoins expands beyond USD pegged assets, the potential of non-USD stablecoins becomes evident. Num Finance is dedicated to addressing the unique needs of emerging markets by issuing stablecoins tailored to specific regions. Currently, our primary focus lies in Latin America, as we direct our efforts towards establishing a strong presence in the region. However, we have ambitious plans to expand our reach and build networks of local stablecoins in the dynamic markets of the Middle East and Africa.
Through our mission, we aim to bridge the gap between traditional financial systems and the opportunities presented by blockchain technology. By embracing non-USD stablecoins, individuals and businesses in emerging markets can benefit from enhanced financial inclusivity, streamlined remittance processes, and new avenues for FX trading. Num Finance is committed to shaping the future of finance and empowering emerging economies through the transformative power of stablecoins.
