ECSA, a Brazil-based stablecoin issuer, announced that it raised $3 million in a pre-seed funding round.
ECSA Raises 3 million Funds
ECSA, which was recently established to make main carry currencies on-chain, announced that it has successfully completed its pre-seed funding round and raised $3 million in funding. According to the company, the pre-seed funding round included several investors, including startup accelerator Y Combinator and Arca.
Currency Carry Trade
A currency carry trade is when a trader borrows another currency with a lower yield, known as a funding currency, in order to buy a currency with a higher yield, such as the Brazilian Real or the Mexican Peso. The trader here earns the price difference between the two currencies as a profit. The aim of this initiative, called ECSA, is to make it on-chain.
Commenting on the issue, Joao Aguiar, co-founder of ECSA, said: “Funding currencies like USD and EUR are already well represented on-chain, we complete the equation.”
ECSA to Start from Latin America
The startup wants to start by making the Brazilian Real on-chain. The BRLe stablecoin is collateralized by Brazilian Treasury Bills and is custodied by Itau-Unibanco, the largest private sector bank in Brazil.
Rodrigo Marino, co-founder of ECSA, said: “BRLe is currently issued on the Stellar network and is in the process of being issued on Ethereum ERC-20. ECSA will be providing a market-making solution to ensure liquidity for the BRLe, making it more easily interchangeable with other tokens such as USDc and USDt.”
Crypto Adoption in Latin America Increases Day by Day
Latin America was the seventh-largest cryptocurrency market last year, according to an analysis by Chainanalysis. Interest in cryptocurrencies is growing in countries with high inflation, such as Argentina. Latin America is becoming one of these regions. Binance, a global crypto exchange, has partnered with Mastercard to launch prepaid cards in Brazil and Argentina, where cryptocurrency remittances are high.
In the statement made by Binance on the subject, the following were mentioned: “The funds from the recent raise will be used to expand the footprint of its stablecoins among investors, exchanges and payment processors.”
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