Description
Mesh.trade, a leading South African decentralized cross-asset marketplace, has facilitated a groundbreaking $1.64 million (ZAR30 million) capital raise for Water Financial, a reverse mortgage provider. This innovative move allows Water Financial to expand its lending capabilities and offer homeowners lucrative returns while remaining in their homes.
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Decentralized Funding for Traditional Needs
The capital raise involved the issuance of 30,000 Series A preference shares, offering investors an attractive return equivalent to 87% of the prime lending rate. This marks a significant development in utilizing blockchain technology and crypto assets for traditional financial needs in South Africa.
“We are delighted to have facilitated this groundbreaking transaction,” said Connie Bloem, Managing Director of Mesh.trade. “This demonstrates the potential of our platform to revolutionize the way businesses access capital.”
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Benefits for All Parties
This capital raise offers a win-win situation for both Water Financial and its investors. The raised funds will allow Water Financial to expand its lending services to a growing market segment – elderly homeowners seeking financial options while maintaining homeownership.
Investors, on the other hand, benefit from access to higher-than-inflation returns through an innovative platform like Mesh.trade. As Chris Loker, founder and managing director of Water Financial, explains, “The platform gives investors access to higher than inflation returns… while servicing a growing market segment.”
A Glimpse into the Future
Mesh.trade’s role in this capital raise signifies a growing trend – the adoption of decentralized finance (DeFi) solutions within the South African financial landscape. This successful transaction paves the way for further integration of crypto assets and blockchain technology into traditional finance.
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Bloem further revealed Mesh.trade’s plans to expand its offerings, stating, “We designed our platform…as a regulated alternative avenue for entrepreneurs looking to raise capital to fund their growth.” This suggests that Mesh.trade will continue facilitating capital raises for various ventures, potentially acting as a bridge between traditional and digital finance.
The success of this capital raise is expected to inspire further adoption of DeFi solutions in South Africa and beyond. As the market evolves, Mesh.trade is well-positioned to be a leader in facilitating secure and efficient capital transactions within the decentralized finance ecosystem.
