1inch Raises $175 Million As It Looks to Bring DeFi to Institutions

Key highlights:

  • 1inch has raised a $175 million Series B led by Amber Group
  • The project aims to bring decentralized finance to institutional customers
  • 1inch has developed a decentralized exchange aggregator and other DeFi products like a limit order protocol

1inch raises $175 million Series B, plans to bring DeFi to institutions

1inch, the team behind the popular decentralized exchange aggregator of the same name, has raised $175 million in a Series B funding round. 1inch did not disclose the company valuation at which the deal was made. The $175 million Series B was led by Amber Group, and included around 50 investors in total. Some of the notable names that participated alongside Amber Group are Jane Street, VanEck, Alameda Research and Celsius. 

The Block reports that 1inch sold its 1INCH tokens at a price of $1.5 in the Series B round. This is a considerable discount compared to the price of 1INCH on the market, which is currently at around $3.95. 

According to 1inch, they initially planned to raise $70 million in its Series B, but decided to increase the target to $175 million due to “huge demand form valuable backers”. 

1inch has developed an aggregator that uses different DeFi protocols to find the most efficient routes for decentralized token swaps. The service allows users to save on transaction costs and access the best available rates for token swaps. In addition to their aggregation protocol, the 1inch team has also developed a liquidity protocol, a limit order protocol, and the 1inch DAO. 

An interesting aspect of 1inch’s Series B is that it will help fund the project’s expansion towards institutional-grade DeFi services. 1inch is working on a product called 1inch Pro, which will provide a compliant DeFi gateway to institutional customers. 

1inch co-founder Sergej Kunz said he believes the next big wave of growth in decentralized finance will be led by institutional players:

“The next $1 trln of assets entering DeFi will come from institutions rather than retail users, and 1inch would like to facilitate entry for them. We have already started work in that direction by attracting some key players from the traditional finance markets, and this collaboration will only accelerate over the next few years.”

1inch’s $175 million Series B follows a $12 million round raised in December 2020, and a $2.8 million round raised in August 2020. 

The 1INCH token currently commands a market capitalization of $704 million, which is good enough for the 149th spot in the overall cryptocurrency market cap rankings.

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