Stellar Development Foundation Invests $5M in Crypto App Abra
- Abra is a P2P blockchain-based platform which provides investment opportunities in over 100 different cryptocurrencies.
- Abra will soon integrate with the Stellar blockchain and not only bring its services over, but start developing Stellar-based products.
Abra CEO Bill Barhydt. CoinDesk
The Stellar Development Foundation (SDF) has invested $5 million into crypto investment app Abra before its integration with the Stellar blockchain, the SDF said in a press release on 7 May.
According to the announcement, the new investment precedes the crypto wallet and investments app’s shift to Stellar, a partnership both firms say will boost the network’s development. Abra will not only bring its growing list of services to the Stellar blockchain, but will also start developing Stellar-based products.
The CEO and Executive Director of the Stellar Development Foundation, Denelle Dixon, commentend on the investment:
“Abra is building a product portfolio of financial services that aligns directly with our mission to create equitable access to the global financial system. This investment marks the beginning of our partnership to work together towards creating equitable access to financial services that also create new, innovative business opportunities for the Stellar network.”
Founded in 2014, Abra is a peer-to-peer blockchain-based platform which gives its users exposure to cryptocurrencies and stock investments. Previous funding rounds were able to net the firm an excess of $40 million, which helped Abra expand its services to over 150 countries, and offer its customers investment opportunities in over 100 different cryptocurrencies.
Abra’s CEO, Bill Barhydt, said in the Thursday press release:
“Our goal is to democratize access to financial services, and we can’t think of a better partner than the Stellar Development Foundation to help us achieve that goal. As we integrate with Stellar, we’re going to be able to build the next generation of banking, leveraging the network’s ability to use traditional banking infrastructure combined with the innovative opportunities of blockchain technology.”
Though Abra continues to develop tools for U.S. and foreign markets, last year it had to restrict some of its services for its U.S.-based customers, mainly because of “continued regulatory uncertainty”. At the time, the company’s clients in the U.S. were restricted from holding several cryptocurrencies, namely EOS, QTUM, BTG, OMG, and SNT.
- Expected to launch in Q1 2023, Abra Bank will allow U.S. citizens to deposit and bank digital assets in a similar way to how traditional banks handle fiat.
- It also plans to launch an international unit with similar services to Abra Bank, and a new staking and yield offering, both scheduled for October this year.
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- The partnership will see MoneyGram connect its network to the Stellar blockchain, allowing connected wallets to access its global retail platform.
- The financial service company will also work with Circle to enable “near-instant backend settlement” using the USDC stablecoin.
- The $55 million will be used to expand Abra’s product and marketing team, as well as to further develop its high-net worth and institutional sales products.
- Abra claimed that over the past year it has seen a significant uptake of its trading services, and a ten-fold increase in its revenue.