That scene for crypto VC funding is clearly holding up very solidly, wouldn’t you agree? We see the headlines: millions flowing into DeFi, AI, and hybrid exchanges. Yet where is this innovation actually taking seed? While Silicon Valley often hogs the spotlight, a quiet revolution is brewing in the Philippines, fueled by resourceful founders with a unique vision for decentralized finance. It’s time we shift our gaze eastward.

The Bayanihan Spirit Fuels DeFi?

You might be thinking, "The Philippines? What's so special about that?" Well, let me introduce you to bayanihan. It’s a Filipino cultural value that represents bayanihan or community spirit, cooperation, and collective work and responsibility. It’s not about the individual awardees, it’s about collaboration to build toward the common goal of shared mobility. And guess what? That's exactly what DeFi needs to escape its current "Wild West" phase and become a truly inclusive and accessible financial system.

Think about it. After all, the traditional financial system has a long history of underperforming for those who need it the most. Costs that are too high, a cumbersome process, and lack of access exclude millions, especially in developing countries. The answer might lie in DeFi’s promise of transparency and decentralization. Technology alone isn't enough. It requires more than just good intentions and a creative economic strategy. That's where Filipino founders come in.

I've seen firsthand how these founders are building projects with a deep understanding of their local communities' needs. They’re not solely profit-seeking mercenaries, but rather civic innovators devoted to constructing solutions that encourage self-determination and foster economic opportunities in places they are most needed. This isn’t just social impact; it’s social impact, reimagined by blockchain tech.

Take the example of a farmer in a rural province who learns about microloans on a DeFi platform. This means he can avoid local banks or lending institutions and their predatory interest rates. Or a South American micro-entrepreneur leveraging stablecoin payments to simplify cross-border transactions and avoid high fees and instability associated with local fiat currency. These are the tangible solutions that Filipino founders are creating, day by day. And that, my friends, is what has me most bullish about the future of DeFi.

Beyond Code, It's About Purpose

We read the headlines talking about Blueprint Finance raising another $9.5 million in seed funding to expand its DeFi product suite. We are optimistic as we watch the levels of DeFi TVL rising back towards its peaks from earlier this year. Yet, let’s face it—most DeFi projects today still lack a meaningful connection to the real world. They’re cumbersome, scary, and mostly serve the purpose of advancing speculation versus serving the public. They lack a soul.

What distinguishes Filipino founders is their laser-like pursuit of purpose. They're not building DeFi for the sake of DeFi. They're building it to solve real-world problems and improve people's lives. They understand the subtleties of their local markets. They understand the issues their communities are up against, and they understand how DeFi can help make more good things happen.

Take stablecoin payments, for instance. Beam, which recently wrapped a $7 million capital raise, is doubling down on their compliance and expansive network resources. It’s a lot more than just speeding up transactions. Relatedly, it’s about bridging digital assets with traditional finance, making crypto familiar and usable for everyday consumers. Instead, it’s about making their stated goal of a more inclusive financial system a reality so that all Americans benefit—not just the crypto 1 percent.

As someone from the Philippines where a significant majority of the population still remain unbanked or underbanked, I resonated deeply with this. That’s why it’s more important to pay attention to purpose here. DeFi presents the world with a novel opportunity to leapfrog expensive and exclusionary traditional financial infrastructure and deliver access to life-changing financial services.

Are You Missing The Next Big Thing?

The world is obsessed with Silicon Valley. If history has taught us anything, the next wave of DeFi innovation isn’t going to come from the usual suspects. Looking beyond the pandemic, founders in the Philippines are cooking up novel solutions in spurring enterprise. These innovations are as much about low/high tech balance and innovation with community values and social impact.

The massive VC funding pouring into the crypto space these days is a huge vote of confidence in the near-term future of decentralized finance. Where that funding goes, and who gets to build those solutions certainly makes a difference. Don’t allow yourself to get high on the fumes of Silicon Valley snake oil salesmen. Look eastward. It’s time to listen to the peaceful uprising taking place in the Philippines. You may be the one to find the next unicorn in DeFi. You could almost touch the wave of creativity born of the power of community and mission. Together, we can spur that same innovation to create a more inclusive and fair financial future for all.

  • Resilience: The Philippines has a history of overcoming adversity. This resilience translates into innovative problem-solving in the face of challenges in the DeFi space.
  • Community Focus: The bayanihan spirit fosters collaboration and a user-centric approach to building DeFi solutions.
  • Untapped Potential: The Philippines offers a large, tech-savvy population with a growing interest in crypto and blockchain technology.

The VC funding flowing into the crypto space is a vote of confidence in the future of decentralized finance. But where that funding ends up, and who is building the solutions, matters. Don't let yourself be blinded by the hype of Silicon Valley. Look eastward. Pay attention to the quiet revolution brewing in the Philippines. You might just discover the next big thing in DeFi. And more importantly, you might just find yourself inspired by the power of community, purpose, and innovation to create a more equitable financial future for all.