Key Takeaways
- Bybit has invested $1 million in EthicHub, a blockchain-based agricultural finance platform, through the Blockchain for Good Alliance (BGA).
- The investment will fund the Bybit Pool, a credit facility within EthicHub’s system to provide loans for small and medium-sized coffee farmers.
- The initiative is designed to increase access to fair financing, improve productivity, and support market access for farmers.
- Bybit’s agreement includes an 8% annual return over a 15-month term, highlighting an approach to impact-driven blockchain investment.
- LendingDev, EthicHub’s operator, will provide quarterly updates on the fund’s performance.
Bybit’s Investment in Agricultural Finance
Bybit has announced a $1 million investment in EthicHub, a blockchain-based platform that provides financial services to smallholder coffee farmers. The investment, made through the Blockchain for Good Alliance (BGA), is aimed at expanding financial access in emerging agricultural markets.
EthicHub was selected for funding following its recognition at the BGA Web3 Oscar, where it received the Grand Social Impact Award. Bybit’s investment reflects an interest in applying blockchain technology to practical economic challenges.
“Blockchain has the potential to provide financial opportunities for those outside of traditional banking systems,” said Helen Liu, Chief Operating Officer at Bybit. “This investment aligns with our goal of supporting initiatives that use blockchain for practical solutions.”
How Bybit’s Investment Supports Coffee Farmers
Establishment of the Bybit Pool
The $1 million investment will establish the Bybit Pool, a fund managed within EthicHub’s ecosystem to provide loans to coffee farmers in emerging markets.
Key Features of the Investment Agreement
- Fund Allocation – The investment will be used within EthicHub’s ecosystem for agricultural financing.
- Financial Access – The funding is intended to support smallholder farmers in securing fair financing options.
- Investment Terms – Bybit will receive an 8% annual return over a 15-month period.
- Reporting and Oversight – LendingDev, EthicHub’s operator, will provide quarterly performance updates.
“This investment will support smallholder coffee farmers by providing financing options and improving access to better market conditions,” said Gabriela Chang, CSO & Co-founder of EthicHub.
Case Study: Financial Access for Coffee Farmers
EthicHub’s Role in Expanding Lending Opportunities
Many smallholder coffee farmers face challenges in accessing affordable credit. In Motozintla, Mexico, coffee grower Neri Ortiz previously relied on high-interest loans and limited market access.
Through EthicHub’s platform, Neri and his cooperative were able to:
- Secure lower-cost financing for farm improvements.
- Invest in quality-enhancing techniques such as controlled fermentation.
- Sell directly to specialty coffee buyers, reducing reliance on intermediaries.
Blockchain’s Role in Agricultural Finance
The collaboration between Bybit and EthicHub highlights an application of blockchain technology in financial services.
Potential benefits include:
- Alternative financing options for smallholder farmers.
- Increased transparency in financial transactions.
- Improved access to capital for agricultural operations.
