Blossom Finance, the Indonesian consultancy which recently declared cryptocurrencies as ‘halal,’ has partnered with a local VC to launch a service targeted at Islamic investors. The fund would raise money in BTC, ETH, and BCH, and invest in socially-engaged businesses in the province of Central Java.
The ‘Halal’ Venture Fund
Blossom’s new venture, launched in a partnership with PBMT Ventura, would utilize PMBT’s prowess to its existing business model to effectively become a “halal cryptocurrency microfinance fund.”
The Indonesian firm fancies itself as a ‘halal’ fund meant for Islamic investors, and this partnership would allow crypto-investments to explore opportunities aimed at reducing poverty while generating a return via a nominal profit-sharing model.
According to Matthew Martin, the CEO of Blossom Finance:
“We’ve spent the last few years developing a network and making key partnerships in Indonesia. Our partnership with PBMT — which is a fully licensed venture capital company in Indonesia — allows us to help some of the best microfinance institutions in the world.”
PBMT, a registered Venture Capital, would raise and accept investments in bitcoin, ether, and bitcoin cash, and invest money in Blossom’s BMT venture – that lends money to small, medium, and farmer-owned businesses. Additionally, the fund will accept investments in USD, via Blossom’s Delaware registered office.
Move To Build Cryptocurrency Exposure
In a win-win situation, the move is said to increase the locals’ participation and exposure to cryptocurrencies – while investing the money in a good cause – and generating returns for investors.
The timing couldn’t be much better, as the Islamic nation gears up for the holy month of Ramadan, which is marked with an increase in local businesses of clothing and food products.
“We’re truly inspired by the work these teams are doing in Central Java, and we’re thrilled to open up the fund to public investment.”
BMT Model is ‘Special’
Blossom’s BMT partnership creates opportunities for community-based savings and commercial financing for businesses at grassroots levels. The microfinance service offers small-loans to a citizen with no access to banking, or a small business that does not classify as a ‘business’ for banks.
According to Martin, the microfinance model is appreciated and well-received:
“You begin to understand that this model is something special – it’s a totally different model of banking unlike anything in the conventional banking realm. The loan sharks hate this model because it’s gradually putting them out of business.”
Blossom’s Classification of Bitcoin As Halal Builds Trust For Investors
As reported by BTCManager on April 13, 2018, Blossom Finance published a paper which classified cryptocurrencies as ‘halal,’ i.e., adhering to Islamic norms as per Shariah rules. With this paper, the fund makes it easy for investors who strive to remain compliant with religious rules but actively discover revenue-generating avenues.
In reference to this, Martin adds:
“What we do is truly global by nature, so naturally it makes sense to leverage the world’s first truly global currencies.”