Bybit Allocates $1 Million to EthicHub to Support Smallholder Coffee Farmers Through Blockchain-Powered Finance

Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has announced a $1 million investment in EthicHub, a blockchain-based platform dedicated to providing financial inclusion for small-scale farmers. The investment is being made through the Blockchain for Good Alliance (BGA), an initiative launched by Bybit to drive social impact through blockchain solutions.

Since establishing the Blockchain for Good Alliance (BGA) in April 2024, Bybit has been focusing on leveraging blockchain innovations to address economic and financial challenges. EthicHub, a key participant in this initiative, previously won the Grand Social Impact Award at the BGA Web3 Oscar, showcasing its effectiveness in bringing financial accessibility to smallholder farmers. This latest investment is aligned with Bybit’s broader strategy of utilizing blockchain technology to enhance financial inclusion and support sustainable agricultural practices.

A Blockchain-Based Financial Model for Small Farmers

EthicHub has developed a financing system that combines productive lending, blended finance, and direct market access to improve the economic sustainability of smallholder coffee farmers. With this $1 million investment, Bybit will establish a dedicated fund called the "Bybit Pool", which will be managed within the EthicHub ecosystem.

Through this initiative, small and medium-sized coffee farmers will gain access to fair and ethical credit lines, enabling them to move away from predatory lending practices. This financial support will allow them to increase their productivity, enhance the quality of their crops, and obtain better prices for their coffee. At the same time, Bybit aims to demonstrate how blockchain technology can contribute to financial empowerment in real-world applications.

Key Aspects of the Investment Agreement

• Exclusive Fund Management: The investment will be managed exclusively within the EthicHub ecosystem, ensuring full transparency and accountability.
• Direct Social Impact: The fund will provide smallholder farmers with direct financial access, strengthening economic resilience in rural communities.
• Sustainable Financial Returns: Bybit will receive an 8% annual return over a 15-month period, reinforcing the viability of impact-driven investments.
• Comprehensive Reporting: LendingDev, the operating entity of EthicHub, will provide quarterly performance updates along with detailed end-of-term reports.

Bridging Blockchain and Real-World Economic Solutions

This investment underscores how blockchain-driven financial solutions can create meaningful change in the global agricultural sector. By working within the BGA framework, Bybit is helping to develop innovative collaborations that integrate blockchain technology into real-world economic empowerment initiatives.

Helen Liu, Chief Operating Officer at Bybit, emphasized the significance of the investment, stating:

"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, Co-founder and Chief Strategy Officer of EthicHub, also highlighted the importance of the partnership, stating:

"Bybit’s commitment is a game-changer for our mission. This investment will directly support smallholder coffee farmers, enabling them to increase productivity, access fair financing, and secure better market opportunities. It is an example of how blockchain can create real-world solutions for pressing global challenges."

A Case Study: The Impact of EthicHub on Farmers Like Neri Ortiz

For years, smallholder coffee farmers like Neri Ortiz in Motozintla, Mexico, faced significant financial barriers, including fluctuating coffee prices, exploitative lending practices, and limited access to markets. Without a reliable financial safety net, many farmers were forced to abandon agriculture altogether.

The introduction of EthicHub brought a much-needed change. By offering blockchain-powered ethical financing, EthicHub provided Neri and his cooperative with the resources necessary to enhance production, invest in sustainable farming techniques, and bypass exploitative intermediaries. For the first time, they were able to sell directly to specialty coffee buyers at fair market prices.

With access to ethical lending, Neri Ortiz was able to experiment with quality-improving techniques, such as controlled fermentation, which significantly increased the value of his coffee. This newfound financial stability allowed him to reinvest in his farm, improve his family’s financial security, and mentor other farmers to adopt similar practices.

Through Bybit’s investment in EthicHub, more farmers like Neri will gain the financial independence needed to expand their operations, sustain their livelihoods, and contribute to the global coffee supply chain. This initiative highlights the potential of blockchain-powered impact investing in creating real-world economic solutions.

Encouraging Broader Participation in Blockchain-Powered Investments

Bybit is inviting blockchain innovators and socially responsible investors to explore the opportunities in blockchain-based impact investments. By fostering strategic partnerships, Blockchain for Good Alliance aims to expand the role of blockchain in addressing financial disparities and promoting sustainable economic development.

About Bybit

Founded in 2018, Bybit is the second-largest cryptocurrency exchange in the world by trading volume, serving a global community of over 60 million users. The company is committed to developing an open and inclusive Web3 ecosystem, forming strategic partnerships with leading blockchain protocols to drive on-chain innovation. Known for its secure asset custody, diverse trading options, user-friendly interface, and advanced blockchain tools, Bybit is bridging the gap between traditional finance (TradFi) and decentralized finance (DeFi), empowering developers, entrepreneurs, and crypto enthusiasts worldwide. For more information, visit Bybit.com.