Multicoin and Coinbase Ventures Invest in SuperApp El Dorado

Jun 05, 2024
On Tuesday, the Colombian stablecoin protocol El Dorado announced the completion of a $3M venture investment round aimed at developing a cryptocurrency payment application for Latin America.
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The project was led by Multicoin Capital, with participation from Coinbase Ventures, UC Berkeley Skydeck, and Awesome People Ventures.

Stablecoins are a class of cryptocurrency assets valued at $160B, pegged to an external asset, primarily the US dollar. They offer a cheaper alternative for sending money abroad compared to traditional banking and money transfer services.

According to El Dorado co-founder and CEO Guillermo Goncalves, the Latin American economy has been destabilized by prolonged inflation. Local cross-border exchanges charge a 6% fee for regular currency swaps, making it nearly impossible for Latin Americans to preserve or improve their wealth.

El Dorado provides a low-cost way to send, exchange, and pay using blockchain technology, with a fee of 0.6% for cross-border payments. In-app payments are free.

The application is connected to 70 local payment methods and supports stablecoins Tether USDT, Circle’s USDC, and Celo Dollar (cUSD) on the Tron, Polygon, and Celo networks, as well as BTC transactions.

According to the company, the app processed around one million transactions in the past year.