Infinity Exchange, a new platform offering institutional-grade capital efficiency in decentralized finance (DeFi), announced a $4.2 million funding round in an effort to drive institutional adoption of DeFi.
Infinity Exchange is led by former Morgan Stanley executive Kevin Lepsoe, who left the world of traditional finance to focus on the opportunities available to investors through DeFi.
However, the founder says institutional investment is key to providing a solid economic foundation for the next iteration of DeFi 2.0.
According to Lepsoe, with access to a range of full-rate products, with fixed to variable rates, there will be more secure opportunities for institutional investors and rate equality for individuals.
“The beauty now is that individual investors will be reassured knowing they have access to the same markets as institutional investors, and it doesn’t matter if they lend or borrow $100 million or $10 million.”
Lepsoe points out that a major downfall of the current DeFi 1.0 space is the disconnect between floating rate and fixed rate markets. In such cases, like the current DeFi setup, capital cannot flow easily, preventing markets from working in union with each other.
The funds obtained in the last round will go towards the development of Infinity’s product offerings, including fixed and floating rate markets, as well as futures and spot markets, among others.
Related: Crypto’s Correlation with Traditional Finance Could Soon Lead to More Bleeding
By providing elements of TradFi, such as a financial markets protocol with fixed and floating interest rates, Infinity encourages large institutions to step into the unknown. Lepsoe told Cointelegraph that this also helps compensate for current shortcomings in current DeFi protocols, like the ones mentioned above.
“By integrating product functionality and introducing more efficient collateral management, we are enabling more players to access and trade markets in many new ways that were not possible before.”
Lepsoe believes such tools for large-scale investors are an important part of the foundation for potential market growth of up to “1,000 times what it is today.”
This development comes as institutional investors eye the space. Some surveys show that around 8% of institutional investors believe crypto will overtake traditional investments in the next 10 years.
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