Stellar Invests $5 Million in Abra, Which Already Raised Over $30 Million

May 8, 2020 2:27 PM UTC

Crypto investors are usually only supporting major cryptocurrencies like BTC, ETH, USDT as they are the most established assets. Traders looking to diversify their investment portfolios are now looking at Stellar as a good investment opportunity.

Stellar is an open-source payment platform that intends to connect with the financial sector to support cross border payments by immensely reducing the transactional fees and processing time.

Since its launch, Stellar (XLM) has grown exponentially, various firms, including Deloitte and IBM have joined the network. To further expand its network with an intention to develop an “inclusive” financial ecosystem, the Stellar Development Foundation, a nonprofit organization that assists the development of the Stellar blockchain, has invested almost $5 million into Abra, a blockchain-based investment application. 

According to the May 6 announcement, SDF stated that Abra received around $5 million to expand its services and product on the Stellar Network. 

“Our goal is to democratize access to financial services… As we integrate with Stellar, we’re going to be able to build the next generation of banking [infrastructure],” said Abra CEO Bill Baryhdt.

Funds Aimed At The Development of The Network

Abra is a blockchain platform that helps clients get introduced to the crypto and stock ventures. The network employs Crypto Collateralized Contracts, saddling smart contracts, and BTH as a passage into price presentation for additional financial assets. 

About the collaboration, SDF Denelle Dixon said:

This investment marks the beginning of our partnership to work together towards creating equitable access to financial services that also create new, innovative business opportunities for the Stellar network.

However, firms haven’t disclosed further information regarding future services and products. Based on the press briefing, it seems that the collaboration will provide Abra consumers with a new tunnel to the conventional financial market via the Stellar platform. 

Stellar is silently chipping away at its rival market share. The network has recently expanded its services into the South East Asia market by joining the Lightnet network. The collaborations intend to build an effective tool that will prompt the development of “new business models” in the Stellar network.

Follow us on
Daily updates

    Leave a Reply

    Your email address will not be published.

    3 × 1 =