In an X post (formerly Twitter), Num Finance has released a stablecoin pegged to the Colombian local currency. The announcement revealed that the stablecoin dubbed nCOP was centered on the Polygon network. The nCOP aims to transform the remittance market, which has recently experienced increased activity.
In a recent report, the Colombian economy received over $6.5 billion in remittances. The spike in remittance activities has challenged the leading stablecoin issuer in Latin America to develop the nCOP that meets the market needs.
Num Finance Expands to Latin America
In a blog post dated August 24, Num Finance mentioned that the primary use case of the nCOP was in the remittance sector. The developers of the new stablecoin incorporated the Num yield features on the nCOP to enable the rewards to be paid through the stablecoin.
The nCOP launched aims at providing the Latin American users with innovative financial tools that will address real-life challenges. According to the blog post, the nCOP is an overcollateralized stablecoin that promotes financial inclusivity and strengthens cross-border transactions.
The team behind the nCOP leveraged their expertise to ensure that the newly launched stablecoin is more stable and secure to use. Moreover the Num finance report illustrated that the nCOP will support companies dealing with real-time settlements.
The stablecoin issuer anticipates that the nCOP will improve cash management efficiency by reducing the potential risk. Num Finance affirmed that the nCOP will have zero foreign exchange risk since it can be traded to Colombian pesos at a ratio of 1:1.
Features of nCOP
Additionally, the Num group ensured that the nCOP offers an effective way to send and receive remittances.
An announcement by the chief executive of Num Finance, Agustin Liserra, revealed that the Colombian market offers endless opportunities to tokenize remittance. The CEO confirmed the new stablecoin will provide users with a regulated financial product to earn rewards from the nCOP. Liserra stated that Colombia ranks among the best-performing remittance markets in Latin America.
The official added that launching the nCOP marked a significant milestone for the Num team to introduce the “state of art financial technologies” in countries dominated by conventional financial practices. The CEO praised the investors for supporting the Num team to increase its stablecoin offering.
Besides expanding its stablecoin offering to Colombia, Num Finance has supported the issuance of nARS pegged to Argentine Peso and nPEN, backed by Peruvian Sol.
Earlier, Num Finance announced that the total supply of the nARS and nPEN reached $2.5 million. At that time, the stablecoin issuer revealed plans to launch the Brazilian pesos, Mexican pesos, and Colombian pesos to expand to Latin America.
Num Finance to Tokenize Digital Assets
The Num Finance expansion plan inspired the stablecoin issuer to conduct multiple fundraising projects. In May, the Num team generated $1.5 million in a pre-seed funding round led by Reserve protocol.
Num Finance plans to utilize the $1.5 million from the investment to enter new territories in Latin America. Also, the stablecoin issuer revealed plans to invest heavily in tokenizing digital assets and money markets.
The Num Finance’s latest development aligns with the Colombian central bank’s core mission of strengthening the remittance market. On August 17, the Colombian apex bank announced plans to launch the central bank digital currency (CBDC). However, the central bank plans to limit CBDC holdings and transactions to strengthen the Colombian financial system.
