The HBAR Foundation launched a $50 million fintech fund and payments to encourage fintech companies to leverage Hedera’s speed, cost, stability and negative carbon footprint to create essential new financial products and services, the CoinJournal in a press release.
Bridging the gap in mainstream fintech
Despite massive inflows of investment into crypto technologies throughout 2021, which were more than fivefold, from $5.4 billion in 2020 to more than $30 billion, according to KPMG, decentralized technology remains an asset. marginal use case in the conventional fintech sector. The HBAR Foundation believes that Hedera is uniquely positioned to address this gap. The new fund aims to unleash a new wave of fintech innovation and drive Hedera’s integration into financial services infrastructure.
Proposals for integrations now accepted
Starting today, the HBAR Foundation is seeking proposals for fintech integrations focused on Hedera and support for financial and payment applications for key use cases. Priority areas include CBDCs, stablecoins, remittance, payment and micropayment services, and asset tokenization.
Stabilizing Tokenized Assets
The Foundation will direct its resources to issuers, technology providers and regulators to help shape and stabilize the emerging class of tokenized assets. Funding priority will be given to modular and API-based approaches, particularly when it comes to open source projects. Shayne Higdon, CEO of the HBAR Foundation, said: Despite the obvious attractions of decentralized networks for fintech builders, technical, cost and structural roadblocks are still holding back innovation with the current crop of technologies. We believe Hedera is uniquely positioned to revolutionize the global fintech space with features such as high network speed, near-instant purpose, security and reliability. Our new Fintech and Payments Fund makes it even more attractive for fintechs to explore the benefits of Hedera in areas such as CBDCs, stablecoins, payments and asset tokenization.
Low, predictable fees and high transaction fee
The Hedera network offers low and predictable fees suitable for high volume transactions, micropayments and minted digital assets, and is one of the highest performing carbon negative decentralized networks. Hedera Hashgraph technology can process 10,000 transactions per second, while traditional payment rails on average process 1,700 TPS. A retail customer can ship internationally in seconds, or a retail shopper can validate a coupon while paying for an item in-store. Even when using smart contracts, Hedera’s EVM is several orders of magnitude faster than the Ethereum Mainnet. The structure of the Hedera NFT token is advanced enough to cover “real world funding” needs, with features such as fractionality, custom fees to support royalty payments, and metadata support.