Two leading African fintech innovators, Xend Finance and Risevest, launch a groundbreaking tokenized investment platform.
In Brief
- Xend Finance and Risevest launch a tokenized investment platform for African investors.
- Xend Finance’s Asset Chain digitally represents real-world assets on a secure blockchain.
- Stablecoins like USDT/USDC facilitate low-threshold investments, reflecting Africa’s demand for stability.
The new platforms aim to democratize access to global financial markets, enabling African investors to participate in real estate and stock markets through blockchain technology.
By leveraging DeFi asset tokenization, the new platform addresses longstanding barriers to wealth creation, creating a fair foot for even the average investor.
The Core Innovation: Democratizing Global Assets
This new platform leverages the concept of tokenized fractional shares, allowing users to invest in high-value assets like prime real estate in Paris of Dubai or U.S. stocks such as Apple or Tesla.
Xend Finance and Risevest have collaborated to build a blockchain investment platform designed to provide African investors with easy access to wealth-generating frontiers previously out of reach.
The project works by securely representing real-world assets digitally on Xend Finance’s proprietary Asset Chain, an Ethereum Virtual Machine (EVM)-compatible blockchain.
Tokenized investment platforms empower Africans to own fractional real estate and stock assets, unlocking wealth creation with minimal capital.[Photo: Medium]
Risevest, a digital wealth management platform with over 600,000 users, acts as the user base, leveraging its expertise in connecting African investors to global markets.
The firm recently acquired a U.S. broker-dealer license, strengthening its regulatory credibility.
On the other hand, Xend, backed by Binance and Google, provides the decentralized infrastructure necessary for seamless DeFi asset tokenization.
The Role of Stablecoins in Investments
The launch is a strategic time. Recent studies unveiled Africa’s rising dependency on stablecoins as a preferred alternative to volatile fiat currency.
Accounting for 43% of total crypto volume, their role in tokenized investments is critical.
A prime example is the Naira’s 18.55 inflation rate, fostering the country’s radical shift to cryptocurrency and stablecoins to retain value.
Eke Urum, Ceo of Risevest, stated:
“This partnership with Xend Finance allows us to offer fractional, dollar-based assets like real estate and U.S. stocks in a seamless, blockchain-powered format. It’s a game-changer for young Africans looking to build wealth securely, transparently, and without barriers.“
A Blockchain Investment Platform for the Masses
One of the core selling points of the blockchain investment platform is how it eliminates intermediaries, reducing costs and increasing transparency.
Unlike traditional systems, the platform functions as a dedicated tokenized stock platform, allowing Africans to build diversified portfolios encompassing both international equities and prime real estate through one accessible, credible interface.
This is particularly significant for millennials and GenZ, who are increasingly turning to digital solutions pioneering Africa’s Web3 economy.
In addition, fractional ownership further enhances inclusivity.
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For instance, an investor in Kenya can purchase a fraction of a Dubai property or a share of Tesla stock without needing the full price.
Through blockchain’s efficiency, it scales easily while mirroring the rise of fractional shares investments in traditional finance.
To build trust, ownership rights are recorded immutably and are transferable, a key factor in a continent where settlement delays and fraud have historically plagued financial systems.
Ugochukwu Aronu, CEO of Xend Finance, emphasized the mission:
“This launch marks a major step in fulfilling Xend Finance’s mission: bringing real-world assets on-chain with speed, scale, and zero friction. Built on Asset Chain’s high-performance infrastructure, this product allows everyday users to own tokenized real estate and stock assets globally, with zero gas fees and no need for a traditional brokerage.“
The Bigger Picture: RWA Tokenization in Africa
The collaboration taps into a growing trend of real-world asset tokenization in Africa.
Projects like Lido Nation’s tokenization of goods, NSE’s recent initiatives in Hedera, and Empowa’s use of Cardano for financial instruments highlight a new tangent for blockchain adoption.
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Institutional interest in leveraging blockchain development has rapidly increased as a by-product of crypto’s recent success with firms like BlackRock and Strategy.
While some concerns still loom, especially with adoption throughout various African nations, the prospects of tokenized investments shine much brighter than before.
In addition, providing access to global stocks via the security and accessibility of Web3 provides a unique perspective on incorporating blockchain into one’s economy.
Redefining African Wealth Creation
The new tokenized investment platform signals a paradigm shift in African finance. With a new generation of thinkers, the continent has brimmed with potential unlike ever seen before.
Thus, combining DeFi asset tokenization with stablecoins and a user-first design empowers these new-gen thinkers to stretch beyond the borders of the continent.
It effectively counters various unique challenges like inflation, capital controls, and limited access with transparent, low-cost, and efficient solutions.
The pressure is now on traditional financial institutions to innovate, potentially accelerating the broader adoption of blockchain solutions.
It might even spur up new sectors to adopt the technology, further integrating blockchain into Africa’s future.
For young Africans, the dream of secure, transparent, and barrier-free investing is no longer a distant possibility—it’s here today.
