Num Finance Introduces nCOP Stablecoin on Polygon for Colombian Remittances

Aug. 25, 2023
Num Finance Introduces nCOP Stablecoin on Polygon for Colombian Remittances

In a bid to revolutionize the remittance market in Colombia, Num Finance, a pioneering fintech company based in Argentina, has unveiled its latest innovation: the nCOP stablecoin. The announcement was made on August 24th through an X post.

Therefore, the nCOP stablecoin, operating on the Polygon blockchain, has been engineered as an overcollateralized digital asset, meticulously pegged to the Colombian peso.

Further, Num Finance’s financial brainchild strategically targets the burgeoning remittance sector in Colombia. The nation receives an astounding $6.5 billion annually through such transactions.

Secure Cross-Border Transfers with nCOP Stablecoin

The stablecoin, by its nature, is poised to address the volatility concerns typically associated with cryptocurrencies, thereby fostering a secure and reliable medium for cross-border money transfers.

Moreover, the distinguishing aspect of nCOP lies in its incorporation of the “Num yield feature.” This innovative addition empowers users to accrue rewards in the form of nCOP, providing a novel dimension to remittances.

Agust√≠n Liserra, the CEO of Num Finance, accentuated this notion, highlighting Colombia’s unique opportunity for pioneering financial products that can seamlessly tokenize remittances. He stated:

 Colombia is one of the main recipients of remittances in Latin America. With nCOP, we can offer a yield on these remittances, further enhancing their value.

Furthermore, the introduction of nCOP marks Num Finance’s third foray into the stablecoin market. Previously, the company introduced nARS, tethered to the Argentinian peso, and nPEN, pegged to the Peruvian sol.

Additionally, the success of these stablecoins prompted a significant pre-seed funding round in May. During this round, Num Finance secured $1.5 million in investment, which was led by the Reserve protocol.

At that point, the collective valuation of nARS and nPEN had already exceeded $2.5 million in circulation. The company is now contemplating the creation of stablecoins linked to the Brazilian real, Colombian peso, and Mexican peso.

However, the Colombian central bank has been deliberating the potential issuance of a central bank digital currency (CBDC). A digital currency could aid remittances with proper regulatory safeguards.

Amidst these advancements, it came to light on August 24th that Mastercard has chosen to terminate support for Binance crypto debit cards across several Latin American countries, including Colombia. This decision reflects the evolving landscape of the cryptocurrency and fintech domains in the region.

Num Finance’s introduction of the nCOP stablecoin emerges as a formidable contender in the realm of remittances. It is ready to utilize the transformative potential of blockchain technology for driving economic growth in Colombia.

Ammar Raza

Associate editor
Skilled in crafting compelling content, with a deep enthusiasm for blockchain technology. I offer precise and easily comprehensible perspectives on cryptocurrencies, decentralized finance, and the ever-evolving landscape. Count on me as a reliable resource to remain informed about the latest advancements in the world of crypto.