Stablecoins have gained traction for cross-border payments, prompting startups like Dubai-based Mansa to provide liquidity solutions. Mansa’s offerings allow payment companies, particularly in Africa, to facilitate instant transactions. The startup recently closed a $10 million seed round, with equity investment led by stablecoin giant Tether.
This funding supports Mansa’s expansion into Latin America and Southeast Asia, where liquidity challenges hinder cross-border transactions. Mansa’s model aims to enhance clients’ cash flow at lower costs compared to fiat alternatives.
Mansa employs real-time transaction data for loan underwriting, leveraging decentralized finance (DeFi) for liquidity sourcing. Their embedded pre-funding solutions streamline due diligence. The company has disbursed over $18 million in financing to clients, with access to over $200 million in liquidity.
Tether’s investment stems from Mansa’s partnership for on-chain liquidity settlement. Mansa favors Tether’s USDT due to its accessibility, usage flexibility, and market dominance in emerging markets. Despite recent regulatory scrutiny in Europe, Tether maintains a significant market share.
Mansa emphasizes compliance, with recent hires from HSBC and Franklin Templeton to strengthen regulatory oversight. The platform employs robust risk frameworks, including AML checks and transaction monitoring.
Mansa has achieved impressive growth since its launch six months ago, with a monthly transaction volume growth rate of 37.5% and a projected annual total payment volume of $1 billion. The company serves various clients, including B2B payment platforms, forex providers, and remittance companies in Africa, Latin America, and Southeast Asia.
Beyond lending, Mansa aims to provide additional services such as payouts and foreign exchange, envisioning a one-stop payment platform for emerging markets. This evolution could potentially position Mansa as an on-chain alternative to payment platforms like Stripe.
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