This latest move in expanding the collaboration between Cardano and Coti builds on previous collaborations as the former seek to upgrade their payment solution in addition to the former’s growing financial infrastructure.
Strategic investment marks first award for New Ecosystem Venture Fund
One of the earliest proposed use cases for blockchain was to democratize financial services, namely by reaching out to unbanked and unbanked communities around the world.
From wire transfers to access to credit facilities to digital wallet solutions, advances across the blockchain landscape have finally made that vision a reality. Among these, Coti is developing the business base layer on which the rest can build.
Coti, short for “Currency of the Internet”, operates a fintech platform that supports payment solutions controlled by stakeholders and enables these stakeholders to digitize any currency. This goal is in line with Cardano’s ambitions to cost-effectively and instantly transfer value between the parties, and the highly scalable throughput available on the Coti platform provides an exceptional foundation.
To help the Cardano network update their payment solution for the upcoming Shelley Mainnet launch, Cfund, the Cardano ecosystem venture fund, has made a strategic investment in Coti. Although the terms and conditions were not disclosed, this will be the fund’s first allocation monitored by Wave Financial and Iohk. Cfund strives to identify projects that work in harmony with Iohk’s blockchain platforms, including Cardano.
Strengthen old and new initiatives equally
For Cardano, the value of introducing the Coti solution lies in the ability to transparently and flexibly advertise the native ADA token as a fast payment method. The two organizations have already formed a successful partnership, which led to the introduction of the Ada Pay solution in 2019.
The solution enables merchants to accept ADA as a form of payment and instantly convert the proceeds into 35 supported fiat currencies to avoid associated volatility. In addition, stationary shops can adopt the solution thanks to the QR code scanner at the point of sale, so that transactions in ADA can be processed easily.
Thanks to Coti’s infrastructure, which already supports 100,000 transactions per second and is therefore highly scalable and at the same time inexpensive to transact and secure, Ada Pay has already been touted for its high degree of integrability.
The recent merger is another step in strengthening Cardano’s payment infrastructure for expanded use in financial transactions. With Cardano’s native ADA cryptocurrency already popular and ranked as the sixth largest token by market capitalization at the time of writing, greater transactional adoption could add even more value to this network.
Although the collaboration will initially focus on improving Ada Pay, the organizations plan to expand their collaboration in other areas. New product and service developments are expected in the second half of 2021.
Have you ever used Ada Pay? How was the experience Let us know in the comments below.
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