Credix, a decentralized credit marketplace, has raised $11.25 million in a Series A funding round led by financial technology-focused venture capital firm Motive Partners and crypto-focused outfit ParaFi Capital. The fresh capital will be used toward platform development, hiring and integration with other Web3 projects.

The Credix platform connects institutional investors such as banks and hedge funds with credit fintechs and non-bank lenders in emerging markets who are looking to raise capital. Credix handles the underwriting, and institutional investors can gain access to higher lending rates with less risk. Financing happens on-chain using the USDC stablecoin and smart contracts for transparency.

Credix is currently available only in Brazil but plans to expand into other emerging markets soon.

“Within the next decade, debt capital markets will be on-chain and democratized," wrote Credix founder and CEO Thomas Bohner in a Medium post. Credix is building the infrastructure to enable this at scale – we’re developing a next-generation credit platform matching institutional investors and FinTech lenders."

Other investors in the round included Valor Capital, MGG Bayhawk Fund, Victory Park Capital, Circle Ventures, Fuse Capital and Abra.