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.
  • Bitcoin (BTC) $9,202.73 (+1.90%)
  • Ethereum (ETH) $234.10 (+3.95%)
  • XRP (XRP) $0.224600 (+0.84%)
  • Bitcoin Cash (BCH) $229.11 (+3.77%)
  • Bitcoin SV (BSV) $165.26 (+7.56%)
  • Bitcoin (BTC) $9,202.73 (+1.90%)
Feb 21, 2020 (Friday)
Paxos launches blockchain-based securities settlement solution with Credit Suisse and Instinet
Brazil to launch new payment system in response to cryptocurrencies
Digital currency exchange Coinbase Pro lists Kyber Network token
Norwegian Air to soon start accepting crypto payments
Swedish central bank begins CBDC pilot with Accenture
Italian soccer team Juventus launches ethereum-based digital collectibles with Sorare
Feb 20, 2020 (Thursday)
Telecom companies complete cross-carrier mobile payments using blockchain
National Stock Exchange of Australia to develop DLT-based digital securities trading platform
South Korean ICO project discontinued, to return $7.5M to token holders
Samsung maintains crypto support in soon-to-launch Galaxy S20
BIS appoints Innovation Hub heads to lead Singapore and Switzerland
Coinbase becomes first crypto company to receive Visa principal membership
Dubai Economy and six banks launch KYC Blockchain Consortium
Crypto Technicals: ETH/USD under downside pressure after 'Bearish Engulfing' pattern
Tim Draper buys $1M worth of Aragon Tokens to create digital courts for DAOs
Renewable energy firm Acciona commits to take CBI’s blockchain-based carbon credits trading platform global
Crypto Technicals: BTC/USD trades below 21-EMA, break below 4H 200 MA (9386) to trigger further downside
Crypto exchange Coinfloor to launch a simplified bitcoin buying service
Indonesia’s customs department joins IBM- Maersk blockchain shipping platform “TradeLens”
Feb 19, 2020 (Wednesday)
Crypto custodian BitGo acquires digital securities startup Harbor
Subscribe to the TokenPost newsletter!
Don't show me this again today.
Back to top
Copyright ⓒ TokenPost. All Rights Reserved.