James Atkins
Editor
Editor
The HBAR Foundation announces the floating of a $50 million fintech and payments fund to motivate fintech companies.
The fund will be used to invest in early-stage companies working on innovative solutions in the space.
This is a significant move by HBAR, as it shows its commitment to supporting the fintech industry.
There is a growing need for HBAR and other blockchain-based services to provide solutions that can address this disconnect.
The $50 million funds are HBAR’s way of incentivizing companies to develop innovative products and services that can make a difference in the industry.
Even though cryptocurrencies have seen a massive inflow of cash into their technologies throughout 2021.
With investment inflows swelling over five-fold from $5.4 billion in 2020 to approximately $30 billion according to KPMG; decentralized technology has remained a minor usage case in the mainstream financial sector.
The HBAR Foundation sees Hedera as being in a unique position to fill this gap.
The new funding aims to generate a new wave of financial technology innovation and integrate Hedera into the financial services infrastructure.
The HBAR Foundation’s $50 million fintech and payments fund targets companies that are building applications on Hedera Hashgraph.
With a focus on those with the potential to drive mainstream adoption of the decentralized ledger technology.
From this moment, the HBAR Foundation seeks ideas for Hedera-focused fintech harmonizing and supporting finance and payment solutions for key use cases.
Preference areas are CBDCs, stablecoins, remittance, payment and micropayment services and asset tokenization.
The HBAR Foundation believes that investing in and working with fintech companies; can help spur mainstream adoption of Hedera Hashgraph and HBAR, its native cryptocurrency.
The Foundation will focus on issuers, technology service providers, and regulators to assist define and maintaining the emerging tokenized asset class.
Modular, API-first methods will be given top priority for funding; particularly open-source projects.
According to Shayne Higdon, Chief Executive Officer at the HBAR Foundation:
“Despite the obvious benefits of decentralized networks for fintech entrepreneurs, today’s technologies face technical, cost, and structural barriers that prevent progress.
Hedera’s unique capabilities, including high network speed, near-instant finality, security, and reliability; give us confidence in our capability to redefine the global fintech industry.
We’ve also made it more appealing to fintechs by introducing our new Fintech and Payments Fund; which provides them with additional incentive to look at Hedera’s advantages in CBDCs, stablecoins, payments, and asset tokenization.”
The Hedera network, is a blockchain-based protocol for the creation and settlement of tokenized derivatives.
It has low, predictable fees that are ideal for large volumes of transactions, microtransactions, and the creation and minting of digital assets.
Presently, the Hedera Hashgraph technology is capable of processing 10 thousand transactions per second.
Unlike the conventional payment lines, on average, process 1,700 TPS.
HBAR is the native coin of the Hedera network and one can use it to pay for transaction fees. HBARs are meant to be staked by node operators to earn a return and help secure the network.
A consumer can make an overseas transfer in a twinkle of an eye; or a retail user may verify a coupon while paying for a product.
Even with smart contracts, Hedera’s EVM is several times faster than the Ethereum Mainnet.
HBAR is a great choice for developing countries wanting to issue their digital currency.
With HBAR, there are very low energy consumption and costs per transaction.
This is because HBAR uses a Directed Acyclic Graph (DAG) instead of blockchain technology.
I have been writing copy for blockchain-related projects since 2017. I understand the importance of being able to communicate clearly and effectively with both technical and non-technical audiences. By leveraging my understanding of the crypto industry trends, I can help increase adoption in this rapidly evolving landscape.
