DFG Capital spearheaded a $ 6.5 million investment from interoperability start-up Interlay, which is building infrastructure for decentralized financial applications across major blockchain networks like Ethereum, Cosmos, and Polkadot.
According to the announcement, the new funds will be used by Interlay to expand its operations and attract more developers to its open source platform. In a statement, James Wo, founder and CEO of DFG, said that Interlay’s solution “will expand the cross-chain possibilities of Bitcoin.”
Interlay intends to integrate cryptocurrencies like Bitcoin (BTC) with DeFi platforms like Polkadot and Ethereum. InterBTC, the company’s main product, is a cryptoasset fully backed by Bitcoin. It is backed by multiple guarantees and works like an algorithmic stablecoin that can be converted into Bitcoin.
The Web3 Foundation, which is behind the Polkadot project, provided the seed funding to begin development in 2019, with the goal of using Bitcoin’s liquidity to fuel the growth of the DeFi ecosystem, the statement said. Interlay intends to double its workforce in the next eight months. It currently has 15 full-time employees and more than 100 community ambassadors.
Interoperability in Defi is seen as a key step in the development of the ecosystem and could usher in further adoption by the masses. The DeFi sector has continued to flourish throughout this year, with the total value locked across all DeFi protocols exceeding $ 270 billion in early November, amid a strong rally in the cryptocurrency markets.
Privacy is becoming an increasingly important issue as the popularity of DeFi protocols continues to grow. Some blockchain projects have been working on privacy solutions. According to Paolo Guida, chief investment officer at Blockchain Valley Ventures, the biggest obstacle to getting DeFi off the ground is privacy.
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