Berlin-based decentralised finance (DeFi) platform Alloy has raised $3 million in a pre-seed round of funding. The investment was led by Headline Ventures and backed by Checkout.com founder Guillaume Pousaz via his family office Zinal Growth, alongside Sorare founder Nicolas Julia and Seedcamp.
DeFi is already a multi-billion dollar industry but institutional investors are so far largely locked out of the ecosystem for both technical and compliance reasons. Alloy is developing a platform that allows investors to interact with existing DeFi protocols through one safe and regulated frontend. The experience will be similar to using a centralized exchange, but for the entire on-chain DeFi ecosystem.
Alloy CEO Paul Faecks said: "Web3 is a generational shift away from legacy institutions, towards a new ﬁnancial system. Most of the active development of this new layer of infrastructure is taking place under the radar for most parts of society. So far, it’s for a small number of crypto natives. But our expectation is that hundreds of millions of users will use DeFi in the coming years. The infrastructure for it to happen in a way where it works seamlessly with the existing ﬁnancial system doesn't exist yet. So, we decided to build it.”
Dominic Wilhelm, principal at Headline added: “Alloy is bridging the gap between the mainstream economy and digital assets, allowing professional investors to understand and make use of highly technical tools.”
The platform will be live in the third quarter of this year and will offer DeFi-speciﬁc ﬁnancial services in various jurisdictions, in line with its vision of becoming the all-in-one Gateway for any investor to decentralised ﬁnance.