Bluejay Finance, an Asia-focused capital-efficient protocol for multi-currency stablecoins, has raised $2.9 million in private funding round co-led a clutch of reputable crypto-centric investment funds.
The round saw participation from Zee Prime Capital, C2 Ventures, Stake Capital Group, RNR Capital, Daedalus Angels, Moonlanding Ventures, Oval Ventures, and more, with operator-angels including DeFi projects like Ribbon Finance, Flux, Voltz, and Alpha Venture Dao.
Many of the investors who came in this round provide great breadth in terms of perspective, despite the recent massive price drops of major cryptocurrencies. It shows how more VC firms are jumping on the stablecoin bandwagon as they increasingly consider it an investable technology.
According to Bluejay Finance, the proceeds of this funding will be utilized in accelerating product development. The company is also looking to actively hire across many functions, including engineering, design and operations.
“DeFi summer was the first wave of innovation, driven by yield farming. Despite the current state of the markets right now, we are incredibly bullish that the next cycle will be driven by sustainable, real use cases that solve a true need. Therefore, Bluejay remains focused on building products and partnerships that will enable these sustainable use cases of stablecoins and bring in the next billion users into DeFi,” says Sherry Jiang, founder of Bluejay Finance.
Julien Bouteloup, founder of Stake Capital Group, comments, “Over the course of the past few years, stablecoins have proven to be a fundamental primitive within DeFi. However, most stablecoins have revolved around the US dollar. For crypto to branch into use cases like real world payments and money markets, it needs to have stablecoins that people in local economies can seamlessly transact with, such as the Euro and Singapore Dollar. Bluejay is positioned to address this need, which will only continue to grow as DeFi matures.”
Stablecoins have been a core part of the growth story for crypto and DeFi, with US dollar-pegged stablecoins being the de facto reserve currency of crypto thus far. Bluejay Finance aims to build an avenue for investors to have more stablecoin solutions centered around currencies other than USD in the DeFi space. The rationale behind this idea is that when looking at investments in real-world assets, issues with foreign exchange risk start to take stage.
In non-USD markets like Asia, Bluejay says locally denominated stablecoins will form essential building blocks for crypto and DeFi to expand into the real world. By having stablecoins of different currencies, Bluejay Finance lowers the barrier for businesses and individuals to transact and minimizes currency exchange risk, making payments and access to capital easier and more efficient.