Ondo Finance receives 20 million dollars in a series A to develop a "decentralized investment bank"
Ondo has raised $20 million in a series A funding round to support its project to "build a decentralized investment bank," the company said in a press release on Wednesday (April 27).
The round was led by Peter Thiel's Founders Fund and Pantera Capital, and will allow Ondo to expand its team and support product launches including its multi-chain expansion.
According to the announcement, "Ondo Finance is developing a decentralised investment bank focused on tying together parties in the nascent DeFi Development ecosystem, including decentralised autonomous organizations (DAOs), institutions, and retail investors. As its initial product, the company developed a ground-breaking fundamental for decentralised structured products that offered clients the choice between downside protection and higher returns.
From there, Ondo expanded into other use cases, including its liquidity-as-a-service (LaaS) offering, which matches DAOs with subscribers to provide liquidity for a DAO's native token, allowing users easily trade your token on decentralized exchanges.
"Decentralized finance" refers to peer-to-peer financial transaction systems, typically using the Ethereum blockchain.
In the coming months, Ondo says it intends to launch additional products designed to increase "the breadth, utility, and accessibility of its offerings," including vaults that pool returns from algorithmic stablecoins along with vaults that aggregate returns across different platforms blockchain.
According to Paul Veradittakit, partner at Pantera Capital, "The proliferation of algorithmic stablecoins and the spread of DeFi beyond Ethereum to other blockchains have given birth to tremendous return prospects, but with greater complexity and hazards." "Ondo will allow investors to benefit from downside protection or better returns while gaining passive exposure to this more distributed yet abundant return." Ondo's series A comes days after venture capital fund Framework Ventures Management announced it had closed a $400 million fundraiser to invest in "early-stage blockchain, Web3, and DeFi Development Services gaming networks and startups."