Infinity Exchange, a new platform that provides institutional-level capital efficiency in decentralized finance (DeFi), has announced $4.2 million in seed funding to boost institutional adoption for DeFi.
Infinity Exchange is led by former Morgan Stanley executive Kevin Lepso and is set to leave the world of traditional finance behind and focus on the opportunities presented to investors through DeFi.
However, the founder said that institutional investment is critical to building the next evolution of DeFi 2.0 for a strong economic foundation.
According to Lepso, access to a full range of products, from fixed to floating rates, will result in more secure opportunities for institutional investors and equity in individual rates.
The beauty is that individual investors now have the comfort of knowing that they can access the same markets that institutional investors do, and it doesn’t matter if they borrow $100 or $10 million.
Lepso sees a major failure of the current DeFi 1.0 space as a disconnect between floating-rate markets and fixed-rate markets. In such cases, like the current DeFi setup, capital cannot flow easily, preventing markets from interoperating.
Funds from the latest round will go toward Infiniti’s product offerings, including fixed and floating rate markets, futures and spot trading markets, among other things.
Related: Crypto’s entanglement with mainstream finance could soon lead to more bloodshed.
By offering TradFi components such as a full financial market protocol with fixed and floating interest rates, it encourages large institutions to step into the unconventional. Lepso told Cointelegraph that this will also help compensate for the aforementioned flaws in current DeFi protocols.
“By integrating product features and introducing more efficient collateral management, we will allow more players to enter the market and trade in many new ways that were not possible before.”
According to Lepso, for large investors, such tools are the main part of the basis of the market growth that can reach “1000 times what it is today”.
This growth comes as institutional investors look into the space. Some research shows that eight percent of institutional investors believe that crypto will outperform traditional investments in the next ten years.