Say hi to Bluejay Finance! This Singapore-based startup just raised a $2.9M seed to build Asian stablecoins pegged to local currencies.

Stable what? Stablecoins are digital currencies pegged to reserve assets like the US dollar or gold. They're basically a digital version of the real-world currency — 1 USDC (stablecoin pegged to the US dollar) = 1 USD.

• Their value is more stable and can be better for payments and transfers between exchanges than crypto.

Investor check. Zee Prime Capital, C2 Ventures, Stake Capital Group, RNR Capital, Daedalus Angels, Moonlanding Ventures, Oval Ventures, Ribbon Finance, Flux, Voltz and Alpha Venture DAO joined in.

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🤷🏻‍♀️ What's the issue?

Most stablecoins revolve around the US dollar, with stablecoins like USDC often used in decentralized finance (DeFi) offerings globally.

Here's what Bluejay's saying:

• Local stablecoins make exchanging crypto assets for local fiat currencies less complicated and cheaper— thanks to less foreign exchange risk and fees.
• Holding a ton of stablecoins pegged to the US dollar means you'll be at risk of high inflation of the US dollar. Holding different local currencies changes that.
• Local stablecoins will allow more real-world usage (since people use multiple local currencies in the real world).

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🧐 The DeFi opportunity

By bringing more local stablecoins to DeFi, they say they can bring more meaningful financial inclusion in SEA.

• DeFi financial services have less requirements and barriers (you don't even need a bank account!), allowing people who'd typically be left underbanked access to financial services they need.

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⚡️ What's next?

With the $$$, they'll grow the team and build Asian stablecoins, starting with stablecoins pegged to the Singapore dollar and Philippine peso.

• The stablecoins will be distributed through partners like fintech companies and both centralized and decentralized exchanges.