Linguard Labs takes controlling stake in Chivo and plans relaunch in El Salvador

Linguard Labs, a financial technology infrastructure company based in California, has secured a controlling stake in El Salvador’s Chivo wallet and said it will relaunch the product through a public-private partnership. The company was founded by former Visa head of mobile innovation Drew Weinstein, while former JPMorgan global chief architect John Davies serves as chief technology officer. According to the announcement, the Salvadoran government transferred the majority stake under guidance from the International Monetary Fund. The revamped Chivo will offer microloans and cash advances based on users’ income, payments, and spending records inside the wallet. Merchants will also be able to apply for cash advances to expand their businesses. Linguard Labs said the services are aimed at unbanked and underserved users. The new plan also includes fee-free remittances from the United States to El Salvador, as well as a cashback-enabled debit card that can be used at merchants that do not yet accept cryptocurrency. Chivo currently has more than 4.5 million registered users.