The market has seen venture capitalists writing big checks for startups in the crypto and DeFi space. Blockchain service and stablecoin provider Paxos has raised $300 million from PayPal Ventures and others. Also, Ethereum scaling solution provider Polygon launches a $150 million fund to support DeFi adoption. Is the 2021 fundraising season underway?
Paxos, the back-end provider for PayPal and Venmo, announced the completion of its $300 million Series D round led by FinTech venture capital firm Oak. Previous investors Declaration Partners, PayPal Ventures, Mithril Capital and others also participated. The new funding round, which values Paxos at $2.4 billion, comes after its $142 million Series C in December.
Another institution-focused digital asset custody firm, Berlin-based Finoa, has closed a 22 million Series A funding round. Finoa now has a list of over 250 customers including CoinList. It plans to become a regulated platform for institutional investors and corporations to manage their digital assets. It competes against larger players such as Anchorage, Coinbase Custody and BitGo.
A new crypto derivatives exchange, GlobeDX announced that it has raised $18 million from investors like Y Combinator and Tim Draper’s Draper Dragon fund. Other investors included crypto exchange OKEx, Pantera Capital, CMT Digital and Wave Financial. Built by Y Combinator alumni Shaun Ng and James West, the platform schedules for launch in early May.
Polygon Launches $150M Fund to Boost DeFi Adoption
More to come: Fixed-rate crypto lending startup Notional Finance raised $10 million in a Series A round led by Pantera Capital. VC firms Parafi, Spartan Group, and others also joined the round. CEO Teddy Woodward said Notional has executed $10 million in loans since its official launch last autumn.
Last but not least, Polygon has launched a $150 million fund. The Ethereum-based scaling technology platform, formerly known as Matic, aims to make DeFi more accessible to end users.
The so-called #DeFiforAll Fund will focus on investing in developers and projects efficiently bringing the benefits of DeFi, farming and lending to a larger user base.
Polygon has committed up to 2% of the total supply of $MATIC tokens – $150 million at the time of the announcement – for the fund to support DeFi projects over the next 2 to 3 years.
“We want to support the top DeFi protocols on Ethereum and help them scale and grow with Polygon,” Polygon co-founder Sandeep Nailwal said in a statement.