Blockchain Startup Celo Raises $30 Million For An In-House Stablecoin

Celo, which is a blockchain payments startup, recently raised $30 million from the well-known crypto investors Polychain Capital and Andreessen Horowitz, according to recent cryptocurrency news reports from Wall Street Journal.

First reported on April 2, Celo is in the focus of the news – as the trading name of A Protocol Inc. – which now plans to use an in-house digital token as well as stablecoin that aims to facilitate cross-border payments and will primarily focus on the unbanked using smartphones.

The company is now conducting pilot-phase tests in Argentina, after raising more than $6.4 million in previous cash injections. As the co-founder of Celo Rene Reisenberg stated:

“We see big potential in letting people — directly on their smartphone — access basic financial services. We are based on blockchain technology but for the average end user we try to abstract that away, to make the experience as easy as any other mobile app.”

There is a big hype around borderless payments without the need for banking credentials right now. The entire craze has formed a preoccupation for crypto startups. For example, a company name such as BitPesa was active several years ago, as well as the country of Kenya which was first in line for disruption thanks to its heavy smartphone payments penetration.

In the long run, Celo aims to build additional services on top of its platform. The two custom-built tokens will separate – one will function as a transaction verification tool while the other will be a US dollar backed stablecoin.

The stablecoin, which is dubbed Celo Dollar, should end up as a native cryptocurrency for users who want to send payments to each other. The creation of this coin builds on a current trend in the industry which is likely to see various stablecoin assets to appear – primarily tied to the USD and the Japanese yen.