Fintech startup, Micro Connect is set to roll out its first exchange platform in Macau on Saturday, according to reports from Forbes.
According to the report, investors will be permitted to trade a brand-new asset class known as Daily Revenue Obligations (DRO) on the platform. Daily Revenue Obligations (DROs) are a type of investment contract that exists in the world of cryptocurrency.
Essentially, a DRO is an agreement between an investor and a crypto platform or service provider. The investor provides a certain amount of crypto as capital, and the platform agrees to use that capital to generate revenue on a daily basis. Consequently, the platform and the investor split the revenue, with the investor receiving a portion of the daily profits.
Following the launch of the exchange, enterprises of Micro Connect are expected to demonstrate that they have a 90-day working history and reliable system connectivity. This is to ensure that they are capable of sharing their revenue on the blockchain. The startup anticipates 30,000 stores listed on its platform, by the end of the year.
Interestingly, the news comes shortly after Goldman Sachs announced the launch of its new digital assets platform.
Micro Connect is a new financial market platform created in 2021, with the aim of giving small businesses in China access to sustainable financing. So far, Micro Connect has made investments in 169 brands, over 2,400 outlets, and all 31 provinces in China.
Fintech Startups Embraces Blockchain Technology
Many fintech startups are embracing blockchain technology because of its potential to improve financial transaction security, efficiency, and transparency.
Markedly, Blockchain technology enables decentralized record-keeping, which means that transactions can be verified and recorded without the need for a central authority. This can result in faster and less expensive transactions, as well as improved security and transparency.
Interestingly, the World Economic Forum (WEF) has also shared its opinion regarding the use of crypto in the financial sector, stating that Blockchain will continue to be an essential part of the modern economy.
Overall, Fintech startups have leveraged the technology to o build new platforms for peer-to-peer lending, digital wallets, and cryptocurrency exchanges.