Tokoin, an Indonesian startup using blockchain technology to reduce the barriers that small and medium scale enterprises face while trying to access credit, has introduced the BISS (Blockchain Innovative Smart Savings) DeFi Program to benefit both investors and partner enterprises. In this program, investors can lock up a certain minimum amount of Tokoin’s native token TOKO and USDT for a period of 3 months, and earn a fixed interest rate on their USDT funds. On Tokoin’s part, the accumulated funds will be used to provide short term loans to the partner MSMEs.
What sets BISS DeFi apart from many other similar programs is that here investors are paid in stablecoin USDT, which guarantees a fixed income irrespective of the market conditions.
Eddy Christian, COO of Tokoin, said, “We are excited to launch BISS DeFi, as it shows that we are staying true to our mission since day one, which is to connect the MSME sector with the traditional financing system. With BISS, we will build trust using blockchain, which will help MSMEs grow their business in our ecosystem.”
Tokoin has introduced 3 distinct tiers with different fund locking requirements, to cater to users with different needs. TOKO staked in any of the ongoing staking programs will also count towards the locking requirement for BISS DeFi.
MSMEs in emerging economies often face a stiff barrier when it comes to procuring capital for business funding. Many of them are started by low income families in rural areas, who lack the necessary credit history and formal documentation that banks demand before issuing any loans. Lack of funding makes business operations unsustainable.
Tokoin is leveraging blockchain technology to create ‘reputation scores’ for these enterprises. Business owners can record their daily transactions details on Tokoin’s distributed ledger, and this transaction history serves as a credit score when an MSME approaches a bank for loans. The more data an enterprise uploads, the more its trust and credibility grows, furthering its chances of procuring loans.