Emurgo, the financial arm of leading cryptocurrency project Cardano, has announced it will invest $100 million in the development of decentralized finance-based products for the ecosystem. The company will spin two subsidiaries for this task, with one being fully dedicated to incentivizing the creation of Africa-based startups that use the Cardano blockchain in the development of their products.
Cardano to Push Ecosystem With $100 Million
Emurgo, the financial arm of Cardano, is planning to kickstart the development of Cardano-related products by directing $100 million to two new investment vehicles. The subsidiaries will have different focuses, but will both contribute to widening the Cardano ecosystem.
The first one, called Emurgo Ventures, will have the task of providing seed funding to interesting companies that involve Cardano in the development of their products. These products could include NFT platforms and decentralized finance (defi) platforms to take advantage of the newly developed capabilities that the Cardano blockchain has activated.
On this, Emurgo’s CEO Ken Kodama stated:
We are more focused than ever on accelerating the development of Cardano’s ecosystem with a rich mix of decentralized services catering to a global community that is increasing in overall blockchain awareness.
Cardano’s representatives have a clear goal, and that is to be the first to harness the potential that Africa has when it comes to adopting cryptocurrency-based solutions. This is due to the fact that the region suffers from financial inefficiencies, and has a large percentage of unbanked residents.
Seeking to meet this demand, Emurgo has launched its second subsidiary called Emurgo Africa. The goal of this subsidiary is to support three hundred startups in the region through seed funding and incubation, in order to make Cardano one of the most used chains in the region. This funding, according to statements, will prioritize projects that use Cardano to provide socially impactful solutions over other kinds of projects.
All of these solutions are focused on creating a rich decentralized finance ecosystem that harnesses the new smart contracts features the chain introduced with the Alonzo hard fork earlier this month. The goal is to build a vibrant defi ecosystem to compete with other solutions already known by their platforms such as Ethereum, Solana, and Avalanche.
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