Nestcoin, the development company behind the modern finance project known as Onboard, has successfully secured $1.9 million in a strategic funding round. Leading this funding round is Hashed Emergent, a Web2.5 fund focused on emerging market builders. Notably, several existing investors, including Alter Global, Magic Fund, CMT Digital, and 4DX Ventures, also participated in this round. Joining as new investors are Adaverse and Base Ecosystem Fund.

The journey leading to this funding round has been marked by significant shifts for Nestcoin. Approximately a year ago, the cryptocurrency exchange FTX experienced an implosion that resulted in Nestcoin, which had raised $6.45 million early in 2022, losing a substantial amount in assets, including cash and stablecoins. Consequently, Nestcoin had to downsize its workforce. Originally, the company had ambitious plans to create, invest in, and operate various Web3 products spanning decentralized finance (DeFi), media, digital art, and gaming, primarily targeted at frontier markets.

In light of these unexpected challenges, Nestcoin has undergone a strategic shift in its focus. CEO Yele Bademosi explained that during this transitional period, the company had to make difficult decisions, including streamlining its product offerings. Nestcoin has now repositioned itself as a development firm primarily dedicated to the advancement of Onboard. Meanwhile, Metaverse Magma (MVM), a gaming DAO that Nestcoin incubated and which raised $3.2 million in funding last September, has become an independent entity.

Nestcoin's intended use of the $1.9 million funding extends beyond financial stabilization. The company aims to leverage these resources to advance its mission of providing equitable access to economic opportunities for individuals in frontier markets through the development of Onboard. This platform is designed to empower Africans who face barriers to accessing financial services and opportunities due to geographical constraints or a lack of trust in traditional financial systems.

At its core, Onboard functions as a noncustodial wallet, competing with global services like MetaMask and Trust Wallet, as well as domestic alternatives like Ejara. Noncustodial wallets enable users to securely store and manage cryptocurrencies, digital assets, and tokens independently, eliminating the need for a third-party custodian, which aligns with the vision of decentralized finance (DeFi).

Yele Bademosi, CEO of Nestcoin, emphasized that they believe this decentralized, noncustodial approach represents the future of modern finance. Users of Onboard can also anticipate several innovative features in the coming weeks, including rewards, credit options, and swift payment capabilities, all leveraging blockchain technology.

One notable feature that sets Onboard apart from other self-custody wallets is its use of email as an alternative to traditional seed phrases for key access. Traditional seed phrases, if lost, can result in the irreversible loss of crypto assets. Onboard employs secure key management and multifactor authentication to safeguard users' assets.

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Since its launch in April, Onboard has gained over 10,000 users. The platform offers users the ability to convert cryptocurrencies, especially stablecoins, into their local currency (the naira) instantly via its wallet. Furthermore, Onboard facilitates peer-to-peer (P2P) trading of digital assets, providing merchants with opportunities to profit. The development of a virtual card product enabling users to spend stablecoins across 160+ countries is also in progress.

While the blockchain industry experienced a surge in investment in recent years, the current investment landscape has become more conservative. Nevertheless, Nestcoin's ability to secure funding from notable entities like Base Ecosystem Fund, FTX, Binance, and now Coinbase through the Base Ecosystem Fund highlights the continued interest in innovative blockchain projects.

The Base Ecosystem Fund, which backs early-stage projects built on Base, a developer-friendly Ethereum Layer 2 solution developed by Coinbase, plays a pivotal role in Onboard's growth. Onboard is integrated into the Base ecosystem of decentralized apps (dApps), positioning it as a global product, even though its initial user base primarily hails from Nigeria.

In summary, Nestcoin's recent funding round, led by Hashed Emergent and featuring participation from a range of investors, underscores the company's resilience and strategic shift toward the development of Onboard. This noncustodial wallet platform aims to democratize access to financial services and opportunities, particularly for underserved populations in frontier markets. Nestcoin's focus on security, ease of access through email-based key management, and upcoming innovative features positions it well for further growth in the evolving blockchain and DeFi landscape.