Huobi Group is deploying $100 million into decentralized finance (DeFi) initiatives in addition to mergers and acquisitions by way of its new consolidated funding arm.
The funding arm, Huobi Ventures, is a completely owned subsidiary of Huobi Group centered on boosting the agency’s funding portfolio and offering long-term assist for revolutionary blockchain initiatives, based on a press assertion shared with CoinDesk on Thursday.
The $100 million pledge is the newest hefty fund to be thrown at DeFi growth. Final month, Polygon launched a $100 million fund to assist DeFi adoption. In March, crypto asset funding agency BlockTower Capital raised a $25 million DeFi fund.
Along with supporting early-stage blockchain initiatives over a three-year interval, Huobi’s $100 million fund may also be used to make strategic acquisitions to develop the agency’s product choices, based on the assertion.
“Acquisitions will probably be built-in into Huobi’s rising suite of blockchain-enabled functions and companies to broaden the enterprise into new markets. The enterprise capital unit will make long-term investments in rising blockchain use circumstances and DeFi initiatives,” the assertion stated.
Huobi Ventures can be establishing a $10 million NFT fund centered on investing in non-fungible token (NFT) collectibles and marketplaces, the agency stated.
The brand new funding arm additionally consolidates various the agency’s many funding autos, together with Huobi Eco Fund, Huobi Capital and Huobi DeFi Labs, right into a single entity, based on the assertion.
“We have now had separate groups concentrate on totally different funding methods, however by bringing everybody collectively below a single entity, we are able to create a extra cohesive technique and proceed to spend money on and assist probably the most revolutionary initiatives which can be shaping the blockchain and DeFi areas,” stated Lily Zhang, Huobi Group CFO.
So far, the corporate has invested $69.42 million in blockchain, media, stablecoin and different initiatives, based on the assertion.