Huobi Global, one of the world’s largest trading platforms by volume, has launched a new venture capital arm aimed at investing in upcoming blockchain, Web3 and decentralized finance (DeFi) projects. The spinoff is called Ivy Blox, and has more than $1 billion (about ₹7,770 crore) in assets under management as part of its “battle chest”. According to a statement released by the company, this pool of funds will be directed “to identify and invest in promising blockchain projects.”
The Ivy Blocks offering through the fund will not be limited to investments alone. The VC arm also plans to set up an asset management platform, a blockchain incubator, and a specialized research arm. blockchain initiative. According to Lily Zhang, chief financial officer of Huobi Global, the company’s asset management division will make “liquidity investments” to assist with the launch of DeFi and Web3 initiatives.
????Welcome @IvyBlocksan independent #crypto Established by the asset management ecosystem #huobi,
Ivy Block manages multi-billion dollar crypto assets and provides liquidity to communities. We strive to work towards an open and efficient network. , pic.twitter.com/raHEi20JwO
— Huobi (@HuobiGlobal) 10 June 2022
according to a Press release Announcing the new investment arm, Ivy Blocks will offer three key services. To begin with, there will be a liquidity investment division that will provide an asset management platform for smart DeFi Mining and income aggregation. The other two areas the VC firm wants to focus on from the get-go include a division called Ivy Labs, an innovative crypto and blockchain incubator; and Ivy Research, which focuses on blockchain and cryptocurrency research.
“Many promising projects face a lack of liquidity and market-going support, which present significant barriers to growth,” said Lily Zhang, Huobi’s chief financial officer, in a statement. The new investment arm “will undoubtedly contribute to building a better, more inclusive DeFi and web 3 Blockchain Ecosystem.”
Ivy Blox also announced that Makar Finance, an automated market maker Decentralized Exchange (DEX) Cube was the first project to receive funding, built on the blockchain.
The firm’s focus on DeFi comes at a time when the overall value of the sector has fallen by about two-thirds from its peak. When the total value is measured in locks or TVLs, the DeFi sector is currently worth less than $84 billion (approximately Rs 6,52,535 crore). According to DeFi TVL Aggregator Daphylama. DeFi TVL peaked north of $252.4 billion (about Rs 19,60,634 crore) in December 2021.