Exciting news for the crypto world! Cobo, a prominent Singapore-based crypto asset management platform, has just announced the successful completion of its US$40 million Series B funding round. This significant investment signals a major push towards expanding its innovative Decentralized Finance as a Service (DaaS) product. What does this mean for the future of institutional involvement in crypto? Let’s dive in.
Unlocking DeFi for Institutions: Cobo’s DaaS Solution
Cobo’s new DaaS offering is designed to be a game-changer. Imagine a seamless gateway for traditional financial institutions and crypto-native firms to tap into the exciting world of DeFi without getting bogged down in the technical complexities. That’s precisely what Cobo is building.
According to Cobo’s Chief Operating Officer, Lily Zhuo, this platform will enable institutions to navigate DeFi while remaining compliant with regulations. Think of it as a user-friendly interface that shields users from the intricate backend processes of DeFi protocols.
Here’s a breakdown of the key benefits of Cobo’s DaaS:
- Simplified Access: Institutions can interact with leading DeFi protocols like Uniswap, Curve, and Compound through a straightforward API.
- Robust Security: Benefit from advanced security features, including multi-signature private key management and multi-layer authorization.
- Delegated Management: Institutions can assign different investment professionals to manage various investment activities, optimizing efficiency and risk management.
- Regulatory Compliance: The platform is designed to help institutions adhere to regulatory requirements within the DeFi space.
The newly acquired capital will also be strategically allocated towards securing necessary regulatory licenses, further solidifying Cobo’s commitment to compliance.
Cobo: A Veteran in the Crypto Arena
Cobo isn’t a newcomer to the crypto scene. Since its inception in 2017, the company has been providing a comprehensive suite of services, including crypto custody, wallet solutions, trading platforms, and staking options. This experience gives them a significant edge in understanding the needs of both individual and institutional crypto users.
Why are institutions turning to Cobo?
Cobo boasts an impressive track record, serving over 300 institutional clients. Remarkably, this includes more than 85% of the second-tier crypto exchanges in the Asia Pacific region utilizing their crypto custody services. Currently, Cobo manages over US$1 billion in assets under custody and has facilitated a cumulative transaction volume exceeding US$20 billion. Notable clients include crypto derivatives trading platform Deribit, mining pool giant F2Pool, and crypto trading platform BitMart.
This Series B funding round was spearheaded by prominent investment firms DST Global, A&T Capital, and IMO Ventures. Prior to this, Cobo raised US$13 million in a Series A funding round in October 2018, led by DHVC and Wu Capital. Looking ahead, Cobo has ambitious plans for an even larger fundraising effort in the near future.
The Minds Behind Cobo: Experienced Industry Leaders
The founders of Cobo are far from being new to the intricacies of the cryptocurrency world. Cobo’s CTO, Changhao Jiang, brings a wealth of technical expertise, having previously worked as an engineer at tech giants Facebook and Google. In 2013, he ventured into the crypto space by launching Bihang, a cryptocurrency wallet later acquired by OKCoin. Similarly, Cobo’s CEO, Discus Fish, is a well-known figure in the mining community, having co-founded F2Pool, one of the earliest and most influential Bitcoin mining pools.
“This fundraising takes us another step closer to Cobo’s foundational vision of empowering 1 billion users to access crypto,” stated Fish.
“With interest in the crypto revolution soaring across Asia, it’s high time to expand blockchain infrastructures to meet the rising demand, especially as we’re seeing growing enthusiasm among institutions.”
He further added, “In the past, we’d witnessed crypto applications evolve from Bitcoin to DeFi and now NFTs. In due time, I even foresee metaverses will be next to be developed on the blockchain.”
The Future is DeFi: A Trillion-Dollar Opportunity?
The rapid growth and increasing adoption of DeFi are key drivers behind Cobo’s recent fundraise and expansion plans for its institutional DaaS offering. The potential of DeFi is immense. Consider this: research firm Blockdata suggests that the DeFi industry could attract a staggering trillion dollars if the world’s top 100 banks were to allocate investments to this burgeoning sector. Cobo is positioning itself at the forefront of this potential revolution, making it easier for traditional finance to embrace the decentralized future.
Conclusion: Bridging the Gap to a Decentralized Future
Cobo’s successful Series B funding and its focus on developing a robust DaaS platform mark a significant step towards mainstream adoption of DeFi. By simplifying access, ensuring security, and navigating regulatory complexities, Cobo is effectively lowering the barrier to entry for institutions eager to explore the vast opportunities within the decentralized finance landscape. With experienced leadership and a proven track record, Cobo is well-positioned to play a pivotal role in shaping the future of institutional crypto engagement.
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