In spite of the fact that high-profile investors such as American Express (Amex) are participating in the new economy, venture capital continues to pour into the crypto industry.
As part of its expansion strategy, cryptocurrency trading platform Abra has acquired $55 million in funding to support the next phase of its growth strategy. The company has attracted a number of high-profile investors from both within and outside the blockchain industry.
Cash from the Series C investment will be used to expand Abra’s product offerings in wealth management, trading, and payments, the business announced on Wednesday. The company will also utilize the funds to increase its in-house capabilities.
Blockchain Capital, Ignia, Kingsway Capital, and the Stellar Development Foundation were among the investors who contributed to the project, which was led by Amex Ventures, a venture capital arm of American Express. Since its launch, Abra has raised a total of more than $85 million.
As proven by the extraordinary expansion of decentralized finance and nonfungible tokens, Bill Barhydt, Abra’s founder and CEO, stated that his company’s “ideal of crypto-centric banking is coming to life” amid the surge in institutional and retail demand.
As billions of dollars have poured into the cryptocurrency market over the past year, Abra has seen a huge increase in the number of people using its trading services.
The company now has 155,000 monthly users and has executed transactions totaling more than $4 billion dollars. Its Abra Trade and Abra Earn services are responsible for the management of over $1 billion in assets.
Recently, Abra announced a new bitcoin loan and borrowing business, capitalizing on one of the most popular use cases in the DeFi space by leveraging the blockchain. It is possible for borrowers to access their cryptocurrency price gains without having to liquidate their assets and so avoid the creation of a taxable event.
According to industry data, the popularity of DeFi lending methods has skyrocketed in recent months, with Aave and Compound locking in a combined $25 billion in total value in the last year alone. In terms of total value locked in, the DeFi market is rapidly approaching the $200 billion threshold.
Venture capitalists have shown a strong interest in supporting DeFi companies, particularly those in the lending and borrowing sectors.
According to Cointelegraph, a decentralized lending network run by a Stanford researcher has acquired $3 million in funding from a variety of investors. The Pledge system, as it is known, is designed to make long-term financing for cryptocurrency holders easier.