Nephews of Federal 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 per year.

The nephews of German Chancellor Olaf Scholz claim to have achieved over 100,000 downloads with their savings app Rubarb. Now, together with their co-founder Kelvin Craig, they 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 enable users to continue earning interest even in times of negative interest rates and inflation. The target group includes both private individuals and companies.

The Kudona app is intended to be similar to an ordinary savings account to which users can deposit amounts from 500 euros. According to the company, customers currently receive 3.8 percent interest annually on the money deposited. The interest would be generated by the Kudona team, which invests the money in so-called stablecoins. The operating costs are to be covered by the surplus interest.

"At the moment, we don't see a more effective way to invest money and earn interest," says Fabian Scholz. The start-up wants to take away users' fear of cryptocurrencies. To protect customers against theft, currency fluctuations and faulty technology, the company cooperates with FX hedging and insurance companies.