NEW YORK (Reuters) – U.S.-based Framework Ventures, the biggest enterprise capital fund investing in blockchain-based decentralized finance, stated on Friday it raised $100 million for its second fund, with participation from massive U.S. institutional buyers.
The corporate stated it has been the biggest liquidity supplier for a few of the high so-called “DeFi” initiatives that facilitate crypto-denominated lending outdoors conventional banking. These embrace Curve, an alternate for stablecoin buying and selling, and decentralized alternate Uniswap.
The second fund’s anchor investor was Accolade Companions, a U.S enterprise capital and development fairness funding agency, whereas Corridor Capital, one of many largest U.S. registered funding advisors with about $42 billion in belongings beneath administration, additionally participated, Vance Spencer, Framework Ventures’ co-founder informed Reuters in an interview.
Accolade and Corridor Capital confirmed the funding in an electronic mail to Reuters.
A number of the main U.S. college endowments have been additionally buyers within the fund, he added, however declined to call them.
The huge development of DeFi purposes, most of which run on the ethereum blockchain, has put the highlight on digital belongings and lifted main cryptocurrencies similar to bitcoin and ether to file highs.
The full variety of loans on DeFi platforms hit $86 billion on Thursday, DeFi Pulse information confirmed, up roughly 650% from $11 billion in October.
Funds raised by Framework will assist a number of DeFi tokens and purposes in addition to centralized initiatives experimenting on DeFi blockchains and providers.
“This fund is basically in regards to the maturation of crypto into this bigger than DeFi mass market client software,” Spencer stated.
Framework plans to spend money on fringe areas of decentralized tech, delving deeper into extra exploratory initiatives, together with non-fungible tokens (NFTs).
NFTs, which have grown sharply in market dimension, are digital belongings on ethereum which might be licensed to be distinctive and never interchangeable. NFTs can be utilized to characterize belongings similar to artwork, images, movies, audio, and different sorts of digital recordsdata.
“Proper now, with video games approaching board blockchains with NFTs and DeFi absolutely mature, you actually have this superb different monetary providers stack that you just can’t get anyplace else on the earth,” Spencer stated.
Framework raised $15 million in July 2019 for its first fund, with one anchor investor.
Reporting by Gertrude Chavez-Dreyfuss; Modifying by Alden Bentley and Richard Chang