According to a news release, the HBAR Foundation has announced a $50 million fintech and payments fund to encourage fintech startups to use Hedera’s speed, efficiency, reliability, and carbon-negative footprint to develop important new financial products and services.
Filling the mainstream fintech gap
According to KPMG, decentralised technology remains a small use case in the mainstream finance sector, despite enormous investment inflows into crypto technologies throughout 2021, increasing more than fivefold from $5.4 billion in 2020 to over $30 billion, according to KPMG.
According to the HBAR Foundation, Hedera is well positioned to fill this void. The new fund intends to kickstart a new wave of financial technology innovation while also strengthening Hedera’s integration into the financial services ecosystem.
The HBAR Foundation is now accepting submissions for Hedera-focused fintech integrations and supporting finance and payment applications for important use cases, which will begin immediately. CBDCs, stablecoins, remittance, payment, and micropayment services, and asset tokenization are all top priorities.
To help define and sustain the developing tokenized asset class, the Foundation will focus its attention on issuers, technology providers, and regulators. When it comes to open-source projects, modular, API-first approaches will receive preferred funding.
High transaction rate
The Hedera network is one of the highest performing, carbon-negative decentralised networks, with low, predictable fees appropriate for high volume transactions, micropayments, and minting digital assets. Traditional payment rails process 1,700 TPS on average, whereas the Hedera Hashgraph system can process 10,000 transactions per second.
A retail shopper can validate a coupon while paying for an item in-store, or a retail consumer can make an overseas remittance in seconds. Hedera’s EVM is several orders of magnitude quicker than the Ethereum Mainnet, even when using smart contracts.
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