By
Temitope Olatunji
April 26th, 2024
The nCOP is Num’s third answer to the extremely high demand for stablecoins in Latin America and other regions.
Num Finance, the Argentine-based stablecoin issuer, has announced the launch of its new stablecoin on the Polygon network. According to the X (formerly Twitter) announcement, the stablecoin – named nCOP – is pegged to the Colombian peso.
Num Finance to Use nCOP to Tokenize Remittances
Num Finance claims in a blog post, that one of the major use cases of any stablecoin is remittances. Therefore, its new token, which is over-collateralized by reserve assets, is also aimed at remittances.
To put that into perspective, Num highlights how Colombia receives over $6.5 billion in remittances yearly. For this, the stablecoin issuer believes that the country presents a unique opportunity to ‘tokenize’ remittances and offer them a yield in nCOP. In line with this, Num Finance CEO Agustín Liserra said:
“Num Finance aims to provide a new possibility for people to send and receive nCOP as remittances and receive a yield on it.”
Stablecoin Demand on the Rise
Meanwhile, Num’s new offering is coming at a time when there is an undeniable high demand for stablecoins. The subset of digital assets, now valued at roughly $124 billion, has become increasingly popular in regions such as Latin America or Turkey, whose financial systems may not be so standard.
However, Num has been consistently catering to that demand. As a fact, the nCOP will be Num’s third answer to the extremely high demand for stablecoins in these regions.
Recall that it has previously issued the nARS – pegged to the Argentinian peso, and the nPEN which is pegged to the Peruvian sol.
In May, Num raised $1.5 million in pre-seed funding that was led by Reserve protocol. At the time, the company confirmed having over $2.5 million worth of nARS and nPEN in circulation. However, it also revealed that it was considering launching stablecoins that will be pegged to the Brazilian real, Colombian peso, and Mexican peso.
So, now that the nCOP has gone live, it might be safe to say that Num Finance will be issuing two more stablecoins shortly.