Abstract & Thesis

Abstract

High-interest rates, legacy technology, and an increasingly regulated environment make it tough for individuals and SMEs to get loans. Emerging markets are heavily underserved and structurally facing a finance gap. Globally, they are lacking about 5.0 trillion annually in investment. FinTech companies and non-bank loan originators are focused on credit automation and user experience but face high costs and long lead times to source capital from private investors.

At the same time, private credit investments tend to be an attractive alternative or addition to traditional investments. Private credit offers a potentially higher-yielding opportunity, that is largely uncorrelated to other markets. Unfortunately, it's not accessible to most investors.

So what if we could connect these international pools of capital with those who really need it. Removing the overhead of banks, and tapping into new sources of credit.

Enter, Credix, a next-generation credit infrastructure to give borrowers in emerging countries access to previously untapped capital. We are working directly with local borrowers such as FinTechs lenders to provide them capital at an attractive interest rate, so they can use these funds for lending purposes. Investors can get access to these securitized and high-yield opportunities via our platform. Accredited investors (hedge funds, private equity, etc.) can invest in credit deals directly, or can spread their risk by investing in our liquidity pools which diversifies across deals.

Thesis

1. Emerging markets provide interesting investment opportunities that are currently not accessible to investors

2. DeFi investment opportunities will be connected to real-world assets not linked to crypto volatility

3. Global (financial) institutional players are seeking compliant access to DeFi