Bybit, the world’s second-largest cryptocurrency exchange, has announced a $1 million investment in EthicHub, a platform connecting smallholder coffee farmers with ethical financial solutions, according to the most recent reports shared with Finbold on Monday, February 24.
Facilitated by the Blockchain for Good Alliance (BGA), the donation highlights Bybit’s ongoing commitment to promoting blockchain as a means of tackling non-digital challenges as well.
This investment will operate exclusively within EthicHub’s ecosystem to ensure transparency and accountability.
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Bybit is likewise set to receive an 8% annual return over a 15-month term.
Bybit’s investment in EthicHub
Since the launch of BGA in April 2024, Bybit has been helping innovative blockchain applications and startups focused on financial inclusion and social impact.
By investing in EthicHub — a BGA incubator project and Grand Social Impact Award winner at the BGA Web3 Oscar — Bybit is taking an additional step to empower smallholder coffee farmers in emerging markets.
The $1 million investment will establish the so-called Bybit Pool, a dedicated fund meant to provide small-to-medium-sized coffee farmers with ethical credit lines, as a sizable chunk of these farmers are typically exploited by lenders.
Bybit aims to provide candidates with fair financing and thus allow them to increase productivity, offer better prices, and prepare for economic downturns.
LendingDev, EthicHub’s operator, will provide quarterly performance updates to keep stakeholders informed on the fund’s progress.
The social impact of blockchain technology
Bybit’s latest investment and BGA’s overall efforts highlight the transformative potential of blockchain in answering economic questions.
Helen Liu, Chief Operating Officer (COO) at Bybit, stated that blockchain technology has the potential to be profitable and transformative, especially in areas with limited banking coverage:
“Blockchain has the power to unlock new financial opportunities for those historically excluded from traditional banking systems. Our $1 million investment in EthicHub reinforces Bybit’s dedication to using innovation for real-world impact, proving that blockchain can be both profitable and transformative.”
Gabriela Chang, chief services officer (CSO) and do-founder of EthicHub, shared her colleague’s sentiment, describing the funding round as “an example of how blockchain can create real-world solutions for pressing global challenges.”
