Nephews of German Chancellor Olaf Scholz found start-up for investments in stablecoins

The new financial app Kudona is similar to a savings book. However, customers are supposed to receive 3.8 percent interest annually.

With their savings app Rubarb, the nephews of German Chancellor Olaf Scholz say they have achieved over 100,000 downloads. Now, together with their co-founder Kelvin Craig, the two are founding the new fintech Kudona in Lithuania. Kudona is a subsidiary of Rubarb and aims to give customers access to decentralized financial markets. The new application would allow users to continue earning interest even in times of negative interest rates and inflation. The target audience would be both individuals and businesses.

The Kudona app is said to be similar to an ordinary savings account into which users can deposit amounts starting at 500 euros. According to its own information, customers would currently receive 3.8 percent interest annually on the money they deposit. The interest would be generated by the Kudona team, which invests the money in so-called stablecoins. Operational costs would be covered by the excess interest.

"At the moment, we don't see a more effective way through which you can invest money and earn interest," Fabian Scholz said. The startup wants to take away users' fear of cryptocurrencies, he said. To protect customers against theft, currency fluctuations and faulty technology, the company cooperates with FX hedging as well as insurance companies.