Num Finance Launches nCOP, a Stablecoin for Latin American Remittances

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25 Aug 2023

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Num Finance, a leading issuer of local stablecoins in Latin America, has announced the launch of its newest stablecoin, nCOP, pegged to the Colombian peso. The stablecoin is live on Polygon, a multi-chain blockchain platform compatible with Ethereum.

What is nCOP and why does it matter? 💡

nCOP is a fiat-backed stablecoin that aims to provide a fast, cheap, and secure way to send and receive remittances in Latin America. Remittances are money transfers sent by migrants to their families in their home countries. According to the World Bank, remittances to Latin America and the Caribbean reached $103 billion in 2022, accounting for 2.6% of the region’s GDP.

However, traditional remittance services are often slow, expensive, and unreliable, charging high fees and exposing users to currency fluctuations and fraud. nCOP offers an alternative solution that leverages the power of blockchain technology to enable real-time settlements, near-zero gas fees, and no foreign exchange risk. Users can exchange nCOP for Colombian pesos at a 1:1 ratio, as the stablecoin is overcollateralized by reserve assets.

Moreover, nCOP also offers a unique feature that allows users to earn yield on their holdings. nCOP rewards are based on regulated financial products that generate income for the users. This way, nCOP not only facilitates remittance flows, but also creates an opportunity for financial inclusion and empowerment for the recipients.

How does nCOP work with Polygon? 🔗

Polygon is a blockchain platform that aims to create a multi-chain ecosystem that is compatible with Ethereum. Polygon offers various scaling solutions that enhance the performance and user experience of Ethereum-based applications. Polygon uses a proof-of-stake consensus mechanism that ensures security and decentralization.

nCOP is built on Polygon’s network, which means that it inherits the benefits of Polygon’s technology. Users can enjoy fast transactions (2.3 seconds per block), low costs (around $0.015 per transaction), and high throughput (up to 7,200 transactions per second). Users can also access a variety of decentralized applications (dApps) built on Polygon, such as DeFi, DAOs, and NFTs.

What is Num Finance’s vision? 🌎

Num Finance is a company founded in 2021 by DeFi industry experts with the mission of bringing state-of-the-art financial technology to areas where conventional finance remains outdated and inefficient. Num Finance offers stablecoins pegged to various local currencies in Latin America, such as the Argentine peso (nARS) and the Peruvian sol (nPEN), in addition to the Colombian peso (nCOP).

Num Finance aims to provide users with innovative digital financial tools for everyday use, such as remittance tokenization, money market tokenization, and digital asset tokenization. Num Finance also plans to expand its stablecoin offerings to new territories and markets, with the support of its investors and partners.

How can I get started with nCOP? 🚀

To get started with nCOP, you need to have a web3 wallet that supports Polygon network, such as MetaMask or Phantom Wallet. You can then use Polygon Bridge to transfer your Ethereum-based assets (such as ETH or MATIC) to Polygon network.

Once you have some MATIC tokens on Polygon network, you can use them to buy nCOP tokens on decentralized exchanges (DEXes) such as QuickSwap or SushiSwap. You can also swap other stablecoins (such as USDC or DAI) for nCOP on these DEXes.

Once you have some nCOP tokens in your wallet, you can use them to send and receive remittances, or stake them to earn yield. You can also explore other dApps built on Polygon network that accept nCOP as a payment method or collateral. To redeem your nCOP tokens for Colombian pesos, you need to contact Num Finance directly through their website or email.

Conclusion 🙌

nCOP is a groundbreaking stablecoin that aims to revolutionize the remittance market in Latin America. By leveraging Polygon’s network, nCOP offers users a fast, cheap, and secure way to send and receive money across borders.

Moreover, nCOP also offers users a chance to earn yield on their holdings, creating a new source of income and financial inclusion for the recipients. nCOP is part of Num Finance’s vision of bringing state-of-the-art financial technology to areas where conventional finance remains outdated and inefficient. nCOP is a stablecoin for the people, by the people.

References

Personal remittances, received (% of GDP) - Latin America ... - Data | World Bank
Blockchains for mass adoption | Polygon
Polygon (blockchain) | Wikipedia
What Is Polygon Network (MATIC)? A Detailed Guide | CoinGecko
Polygon Network Embraces Colombian Peso Stablecoin nCOP – Crypto ... | Crypto News
Num Finance | Blog | Num Finance launches nCOP | Num Finance
Num Finance launches Colombian Peso-pegged stablecoin nCOP | CoinJournal
Num Finance launches Colombian peso stablecoin on Polygon | Cointelegraph
Remittances to Latin America and the Caribbean in 2021: Migrant Efforts ... | IDB Blogs
Latin America's Changing Remittance Landscape | Americas Quarterly
Remittances in Latin America and the Caribbean: family bonds across ... | IDB Blogs