Cauris is the first company to independently manage a TrueFi-based lending portfolio, with an aim of becoming DeFi’s bridge to Global South financial markets
San Francisco, California, May 2022 — TrustToken, the core team responsible for building the leading unsecured lending protocol TrueFi, announces the launch of the first independently-managed lending portfolio on TrueFi. Managing the loans will be Cauris Finance, a mission-driven debt financing company backing fintech projects in emerging and frontier markets. To date, Cauris has allocated over $85m to a diverse and growing portfolio of borrowers around the globe, and with TrueFi, is further expanding its lending business on-chain.
The fintech scene is booming in the Global South, with companies focused on these ecosystems accounting for a major share of the total funds African startups raised in 2021. Fintechs are key for promoting financial inclusion in the regions where both businesses and consumers are often underserved by traditional banking. At the same time, Global South fintechs are not immune from the plight that most small and mid-sized businesses face in developing economies. Their higher risk profiles often result in constrained access to credit, both in size and speed, and often on undesirable terms—major pitfalls for their capacity to absorb shocks, scale and explore new markets and revenue streams.
Cauris Finance will use TrueFi’s lending protocol to issue uncollateralized loans to fintech businesses in the Global South, using blockchain technology to deliver faster and cheaper credit to startups with otherwise limited access to capital, but lucrative yield opportunities. Cauris will manage its own loan book, acting as TrueFi’s first independent portfolio manager. It will issue all funds to end borrowers in fiat, in full compliance with local rules and regulations, using the blockchain only as the backbone for moving value.
The Cauris portfolio launches with a $2 million cap, expected to grow to $10m this year. The portfolio will immediately be open to all verified non-U.S. investors who complete standard Know-Your-Customer checks.
With the aim of becoming TrueFi’s bridge to emerging world financial opportunities, Cauris’s extensive emerging markets portfolio includes the following fintechs:
“Businesses in the emerging world often lack access to credit,” says Rafael Cosman, CEO of TrustToken. “We are thrilled to see TrueFi bringing liquidity to the most impactful financial opportunities around the world, and truly growing global financial accessibility. Cauris Finance is using the protocol to deliver regulatory-compliant loans to businesses that need them the most, which will help them get a foothold in their target markets and, in the long run, accelerate growth in markets globally.”
“Blockchain is an ideal backbone for the financial services of the future,” says Alexandre Liege, Chief Executive Officer of Cauris Finance. “With TrueFi, we are building the bridge between the blockchain ecosystem and traditional finance, and all that entails in terms of due diligence and portfolio management, as well as AML and KYC. In this way, we can offer businesses in the Global South access to the most capital-efficient credit they can get while providing TrueFi investors high-growth and high-quality investment opportunities.”
TrustToken is building the blockchain protocol for global lending. TrueFi lets portfolio managers launch uncollateralized lending opportunities on-chain to a global base of lenders and borrowers. Since November 2020, $1.3B of loans have been originated and $1B repaid, with no defaults using TrueFi.
For interested borrowers or asset managers looking to build financial products on TrueFi, please contact [email protected].
About Cauris Finance
Cauris is a mission-driven investment firm that provides private credit to financial technology companies in emerging markets. Working across the Global South—with financings in Africa, Asia and Latin America—Cauris partners with fintechs that are making financial inclusion a reality for tens of millions of consumers and small businesses. Through debt investments, Cauris enables its partners to scale efforts that provide the traditionally underbanked access to financial services that improve their lives. Cauris uses decentralized finance services to slash the fees and speed up the loan process, while issuing the funds as regulatory-compliant loans in fiat. Cauris aims to facilitate efforts that extend financial services to 100M people to empower individuals and small businesses; enable economic growth in emerging markets; and accelerate the growth of the global middle class.
For more information, visit: https://www.caurisfinance.com/
Rafael Cosman - Co-Founder & CEO