With initial seed funding, Rumsan developed core functionalities like beneficiary management and real-time reporting. Now, growth funding will enable the integration of digital assets, enhancing aid delivery by enabling the secure receipt and disbursement of digital assets to beneficiaries.
Xcapit’s self-custodial Web3 wallet addresses financial inclusion challenges by providing unbanked populations with access to financial planning tools, gamified savings, and financial services like loans.
Shortly after it graduated from seed stage investment with the Fund in 2022, Xcapit conducted a pilot with one of Argentina’s largest credit card issuers to increase access to financial services. Using stablecoin-collateralized credit, its escrow infrastructure significantly lowered the industry’s rejection rate of 92 per cent. Beneficiaries received credit in the local currency while saving in a stable currency (US digital dollar), improving their credit scores and entering the traditional financial market.
During the pilot, over 50 per cent of users transferred cryptocurrencies from other accounts to the wallet, indicating higher-than-expected crypto adoption. Although the pilot sample is small, the findings are essential for scaling the solution. Xcapit’s Web 3 wallet proved to effectively serve gig workers (44 per cent), foreigners (44 per cent), and residents of remote areas (50 per cent)—groups typically underserved by traditional banks. By offering alternative ways to build credit history and join the digital economy, Xcapit demonstrates its potential to drive social and economic inclusion, showing that innovative financial solutions can bridge gaps and transform lives, even with a modest initial user base.
With the funding and technical assistance that comes with belonging to the growth cohort, Xcapit is developing a low-cost, low connectivity digital wallet for feature phones to further democratize access to digital assets, allowing even those without advanced smartphones or stable internet connections to participate in the digital economy.
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