Introduction

Xcapit, a pioneering Latin American company specializing in blockchain and AI-based solutions, is on a mission to redefine financial inclusion and humanitarian aid delivery. With Growth Funding from the UNICEF Venture Fund, Xcapit is expanding its Open Source blockchain platform to enable secure, cost-effective, and transparent digital money transfers for underserved populations. This innovative system empowers NGOs, companies, and governments to provide direct financial support to beneficiaries, even in areas without smartphones or internet access.

Transforming Humanitarian Aid with Blockchain and Web3 Technologies

Xcapit leverages blockchain’s inherent transparency and traceability to revolutionize cash aid distribution. By employing account abstraction, the platform ensures a seamless and user-friendly experience for beneficiaries with limited technological literacy. Key features include:

• Smart Wallets Operable via Basic Phones: Accessible through SMS, eliminating the need for internet or smartphones.
• Low-Cost Transactions: Blockchain reduces transaction costs to $0.01 per transfer, maximizing aid value.
• Transparent Monitoring: A blockchain-powered tool offers end-to-end visibility of funds, enabling better impact measurement.

This approach bridges gaps in digital literacy, financial access, and operational efficiency, connecting humanitarian organizations to vulnerable populations more effectively than ever.

Building the Foundation: Xcapit’s Seed Stage Innovations

With initial seed funding from the UNICEF Venture Fund, Xcapit developed a Web3 crypto wallet—the first of its kind certified as a Digital Public Good. This wallet empowers users to manage their wealth, plan finances, and access low- and middle-risk investment products. To enhance financial inclusion in Latin America, Xcapit partnered with local banks to enable users without credit histories to secure their first credit cards using crypto-backed collateral.

Evolving Solutions Based on Key Learnings

Building on the success of the Web3 crypto wallet, Xcapit is now focused on expanding access for populations without internet or smartphones. Lessons learned from the initial investment revealed the importance of simplifying onboarding processes for users with limited digital literacy or infrastructure. These insights have informed Xcapit’s SMS-based solution, which eliminates the need for internet connectivity and minimizes onboarding steps.

Key enhancements include:

• Intuitive SMS Flows: Simplified wallet activation and usage processes.
• Language Inclusivity: Support for languages like Quechua to reduce barriers for native speakers.
• Collaborations with Telcos: Streamlining digital identity verification to ensure compliance with humanitarian standards.

Unique Features of Xcapit’s Blockchain Solution

Xcapit’s innovative approach stands out in several ways:

• Self-Custody: Beneficiaries maintain full control over funds, ensuring security and independence.
• No Crypto Knowledge Required: Intuitive interfaces and processes make the solution accessible to all.
• No Gas Fees for Beneficiaries: Aid organizations absorb transaction costs, ensuring recipients receive full support.
• No Smartphone or Internet Required: Operable entirely via SMS, the solution reaches even the most remote areas.

By combining cutting-edge blockchain technology with user-centric design, Xcapit is breaking down traditional barriers to financial inclusion.

The Value of Open Source

As an Open Source platform, Xcapit offers unparalleled transparency, collaboration, and scalability. This approach allows stakeholders to audit the system, encourages global contributions to enhance the solution, and facilitates adaptation across diverse regions and challenges, making Xcapit’s platform a true Digital Public Good.

Accomplishments from the First Half of the UNICEF Growth Funding Investment

Xcapit’s progress during the first half of the investment period includes:

• Solution Development: Creation of an SMS-based smart wallet tailored for underserved populations.
• Pilot in Cusco, Peru: Demonstrated a 100% success rate in fund disbursement, with transactions as small as $0.10 and reduced costs of $0.01 per transfer.
• Inclusivity Measures: Integrated Quechua language support, ensuring accessibility for native speakers.
• Enhanced Efficiency: Achieved near-instant disbursement times, improving vendor and beneficiary experiences.
• Collaborations: Partnered with local stakeholders to tailor the solution to community needs.

Focus for the Second Half of the UNICEF Growth Funding Investment

Looking ahead, Xcapit’s priorities include:

• Expanded Pilots: Launching pilots in new Latin American countries to validate scalability and adaptability.
• Strategic Partnerships: Collaborating with payment networks and other UNICEF-funded startups to enhance interoperability and strengthen financial ecosystems.
• Feature Enhancements: Introducing merchant off-ramping, expanding language support, and refining user experiences to ensure inclusivity and ease of use.

Join Xcapit in Revolutionizing Financial Inclusion

Xcapit seeks partnerships to address key challenges and scale its groundbreaking solution:

• Merchant Off-Ramping: Collaborate with fintechs or payment networks to streamline vendor payouts.
• Digital Identity Integration: Work with Telcos to enhance beneficiary verification and onboarding processes.
• Implementation Partners: Engage with NGOs and companies to deploy the solution in humanitarian aid programs.

Interested organizations are invited to connect with Xcapit at [email protected] to advance financial inclusion and aid distribution globally. Together, we can create a system that empowers the most vulnerable communities and sets a new standard for humanitarian support.