• Thu, 05 Dec 2019, 10:58 PM
  • All times are UTC
  • Edition:
    International
Copy link
Increase text size
Decrease text size
Link copied

Fledgling crypto money lending platform raises $25M led by Andreessen Horowitz

Compound Finance, a decentralized finance startup, has successfully raised $25 million in its Series A funding, with the money allocated for the bolstering of its own protocol.

Image via Compound.Finance

Tue, 19 Nov 2019, 07:15 am UTC

Ethereum-powered crypto money lending platform Compound Finance has recently announced that it successfully raised $25 million in its Series A funding. The round was led by investment juggernaut Andreessen Horowitz, with Polychain Capital, Paradigm Capital, and Bain Capital Ventures joining in as well.

The funding marks the biggest venture capital investment for fledgling decentralized finance (DeFi) so far, with the money slated to push Compound’s decentralized nature forward. Compound founder Robert Leshner said that most of their efforts will be geared towards bolstering the protocol’s infrastructure so that custodians and exchanges will be able to tap into the resource, CoinDesk reported.

Following that, Leshner said they’d probably try to create a unique business model that is grounded on the protocol itself.

A two-year goal

“Our goal is to slowly transition the very limited functions that we control to the community over the next two years. Our highest priority is building something that is sustainable. … From there we could probably build on top of the protocol,” Leshner said.

Leshner revealed that most companies that are borrowing are those operating in the crypto industry, staking their own assets and taking out stablecoins to spend on operational costs. What’s more, crypto traders and hedge funds are also leveraging their own Ethereum for short-term gains.

A promising venture

Despite being relatively new to the scene, Compound Finance has captured the attention of giant investment groups as it’s a promising venture. Chris Dixon, the general partner of Andreessen Horowitz, expressed his positivity towards the crypto lending platform and the team behind its operation.

“Compound is a lending protocol that is open to anyone in the world, that dis-intermediates banks and allows anyone to earn interest on their money. We’ve worked with Robert and his team for over two years and think they are world-class technologists and entrepreneurs,” Dixon said.

As for the rest of the emerging decentralized finance sector, it’s currently experiencing an accelerated growth rate as companies are trying to leverage its advantages. Crypto exchange giant Binance is one of the many entities that’s trying to expedite the sector’s proliferation and has recently extended its hand on the industry by providing its own valuable data.

TokenPost | [email protected]

<Copyright © TokenPost. All Rights Reserved. >

To leave a comment, please sign in.
More
  • Bitcoin (BTC) $7,447.44 (+2.71%)
  • Ethereum (ETH) $149.05 (+1.66%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $213.68 (+2.09%)
  • Litecoin (LTC) $45.24 (+0.17%)
  • Bitcoin (BTC) $7,447.44 (+2.71%)
Dec 5, 2019 (Thursday)
13:09
Dunamu’s crypto subsidiary DXM partners with Ledger to launch custody service for institutional clients
11:28
Crypto Technicals: Major Cryptocurrency Support Resistance Levels
11:28
Crypto Technicals: Major Cryptocurrency Daily Technical Outlook
10:49
Crypto Technicals: LTC/USD pauses downside, bullish RSI divergence raises scope for upside
10:43
U.S. financial regulators call for continued monitoring of digital assets and DLTs
10:10
Crypto Technicals: IOT/USD retraces above 0.20 handle; recovery lacks traction
09:38
Samsung Blockchain Keystore to be soon available in six more European countries, says TRON CEO Justin Sun
08:15
KT and China Mobile team up to commercialize blockchain-based roaming charge system
07:13
Crypto Technicals: XRP/USD capped below 5-DMA, on track to test trendline support at 0.1995
06:44
France to launch CBDC trial by end of Q1 2020
06:35
Crypto Technicals: BTC/USD finds selling pressure at highs, bias remains bearish as long as 21-EMA resistance holds
06:25
OneConnect seeks to raise $500M for its upcoming IPO amidst global expansion of parent company Ping An
06:17
China’s Hainan announces new measures, $142M fund to support blockchain industry
05:25
Sean Neville to step down as Circle co-CEO
05:02
Bakkt CEO Kelly Loeffler appointed as U.S. senator by Georgia governor Brian Kemp
04:58
Gemini burns GUSD bringing total supply to 4.1 million
04:46
Crypto Technicals: ETH/USD recovery capped at 200H MA, break below 78.6% Fib (141.35) to knock prices lower
03:59
Poloniex users could lose fund, account if they fail to withdraw tokens by Dec. 16, Circle warns
03:36
North Korean hacking group may be behind near-undetectable macOS malware
Dec 4, 2019 (Wednesday)
13:46
BOJ Governor Haruhiko Kuroda sees no public demand for CBDC at the moment
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.
PUBLISHsoft