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Tether, the provider of the USDT stablecoin, heads a $10 million investment round in MANSA.

Business intends to broaden its reach in Asia and Latin America territories.

Leading stablecoin issuer Tether headlines a $10 million investment round for blockchain governance...
Leading stablecoin issuer Tether headlines a $10 million investment round for blockchain governance platform MANSA.

Tether, the provider of the USDT stablecoin, heads a $10 million investment round in MANSA.

In a recent funding round, MANSA Finance, a stablecoin liquidity provider for cross-border remittance companies, secured $10 million. The investment was led by Tether and Polymorphic Capital, with additional participation from Faculty Group, Octerra Capital, Trive Digital, and other individual investors, investment firms, and funds.

Based in the UAE, MANSA aims to tackle the liquidity challenges that often hinder seamless cross-border payments, particularly in emerging markets like Africa, Latin America, and Southeast Asia. The company's platform facilitates instant liquidity in stablecoins, bypassing traditional payment delays and currency risk.

Before MANSA, African companies like Yellow Card and Accrue used stablecoins for cross-border transactions, albeit via different models. Accrue, for example, relied on local agents in African countries to settle payments while holding stablecoin reserves as escrow. MANSA, however, leverages blockchain-based settlement at T+0 to streamline cross-border transfers.

MANSA's unique approach has already facilitated tens of millions of dollars in transactions since its launch in August 2022. Notably, the company has partnered with several companies in Africa, Asia, and South America, including the African cryptocurrency exchange and cross-border payments platform, Bitmama.

The fresh capital will be used to expand MANSA's operations into Latin America and Southeast Asia, regions with high remittance volumes and significant demand for reliable, efficient cross-border payment solutions. Despite being the largest recipient of remittances in 2023, Africa remains the most expensive region for sending money, with an average transfer cost of 7.73%.

MANSA addresses key liquidity challenges such as payment delays and currency conversion inefficiencies. By financing cross-border transactions in stablecoins at T+0 settlement times, MANSA transforms idle fiat liquidity into "real yield," implying that funds tied up in liquidity pools generate returns while supporting rapid payment flows.

MANSA sources liquidity from DeFi pools and investment funds, hosting its liquidity pool on Ethereum's Layer-2 network, Base. The company has processed $27 million in on-chain cross-border payments since its launch.

The funding news was announced in a press release, but no specific details were provided about the terms of the funding round or the valuation of MANSA Finance after the funding round. Tether's strategic interest in MANSA's cross-border payment infrastructure is underscored by its $3 million equity investment in the company.

In summary, MANSA Finance serves as a stablecoin liquidity provider and enabler for cross-border remittance firms by delivering instant liquidity in stablecoins, utilising blockchain-based settlement at T+0, converting idle fiat liquidity into yield-generating capital supporting payment flows, and expanding in emerging markets with high remittance activity. This integrated approach significantly improves speed, cost, and reliability for remittance companies operating in these regions.

  1. MANSA Finance, a stablecoin liquidity provider, has secured $10 million in a funding round, with Tether and Polymorphic Capital leading the investment.
  2. Based in the UAE, MANSA aims to tackle liquidity challenges for seamless cross-border payments, particularly in emerging markets like Africa.
  3. Before MANSA, African companies like Yellow Card and Accrue used stablecoins for cross-border transactions, but MANSA leverages blockchain-based settlement at T+0 for faster cross-border transfers.
  4. The fresh capital will be used to expand MANSA's operations into Latin America and Southeast Asia, where there is high demand for efficient cross-border payment solutions.
  5. MANSA sources liquidity from DeFi pools and investment funds, hosting its liquidity pool on Ethereum's Layer-2 network, Base.
  6. The company has partnered with several companies in Africa, Asia, and South America, including the African cryptocurrency exchange and cross-border payments platform, Bitmama, and has processed $27 million in on-chain cross-border payments since its launch.

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