Quick take:
- The Tribal Finance lending protocol uses open-source Ethereum smart contracts to facilitate transactions between parties.
- The inaugural lending pools are funding credit lines for SMEs in emerging markets.
- Tribal is backed by some of the leading Web3 venture capital firms including Coinbase Ventures, Circle Ventures, and Shima Capital, among others.
Tribal Credit has launched Tribal Finance, its first lending pool to support small and medium enterprises (SMEs) in emerging markets. The inaugural lending pools will fund credit lines for SMEs in Latin America and the Middle East.
According to the announcement, Tribal Finance lending pools offer USDC yields of up to 14% to credit investors. The platform uses open-source Ethereum smart contracts to facilitate transactions between parties.
The company is tapping on the power of blockchain technology to provide fintechs in developing economies with the much-needed capital for growth and expansion.
Commenting on his company’s latest product, Amr Shady, CEO of Tribal Credit said: “Tribal Finance is a game changer for fintechs. It enables secure, low-friction connections with global credit investors, helping us to deploy capital more efficiently and transparently.”
The company is backed by some of the leading Web3-friendly venture capital firms including Coinbase Ventures, Circle Ventures, and Shima Capital, among others.
Tribal Finance leverages tokenized legal frameworks to ensure compliance and legal protections alongside every transaction, connecting global investors to regulated, compliant investment vehicles on public blockchains.
According to press material shared with NFTgators Tribal Finance has taken measures to boost the appeal of its product to investors with embedded credit enhancements that include first-loss capital — a popular financing arrangement used by hedge funds to improve a transaction’s profile for investors and structured waterfall mechanisms.
Both lenders and borrowers are also must meet stringent Know Your Customer (KYC) and Anti-Money Laundering (AML) requirements, as part of Tribal Finance’s dedication to comply with legal requirements.
This launch allows Tribal Credit to bring the benefits of blockchain technology to real-world assets, marking a significant stride in bridging the gap between traditional finance and the burgeoning world of digital assets.
****
Stay up to date:
Subscribe to our newsletter using this link – we won’t spam!
