In a significant move towards integrating institutional investors into the decentralized finance (DeFi) ecosystem, London-based Keyring has successfully raised $6 million in a venture capital funding round. This investment aims to bolster Keyring’s efforts in developing an on-chain compliance platform that facilitates regulatory-compliant interactions with DeFi platforms for institutional investors.
Spearheading Compliance in DeFi
The seed investment round, led by Gumi Cryptos Capital and Greenfield Capital, with additional support from Motier Ventures, Kima Ventures, and others, underscores the growing interest and need for compliance solutions within the crypto sector. Keyring’s platform is uniquely designed to enable financial institutions to navigate the DeFi landscape while adhering to the regulatory standards of global financial hubs.
Facilitating Institutional Entry into DeFi
With the crypto regulatory environment becoming increasingly defined, Keyring’s services are timely. The platform allows institutions to engage with DeFi protocols securely, addressing concerns related to counterparty risks and data privacy through advanced technologies like zero-knowledge (ZK) proofs.
A testament to Keyring’s potential is its successful proof of concept trial with Laser Digital, Nomura’s crypto division. By creating a compliance wrapper around the USDC stablecoin, Keyring demonstrated the feasibility of its solution in facilitating compliant DeFi transactions for institutional players.
Unlocking Blockchain Benefits for the Financial Industry
Miko Matsumura, managing partner at gumi Cryptos Capital, highlighted the transformative impact of Keyring’s solution, noting, “Trillions of dollars are unable to access the transparency, determinism, automation, and settlement advantages of blockchain technologies for financial applications, due to variations in financial regulations.” Keyring’s platform promises to unlock these benefits for the broader financial sector by ensuring compliant interactions with verified counterparties.
As Keyring progresses with its mission to bridge the gap between institutional finance and the DeFi world, its recent funding round marks a significant step forward in realizing the full potential of blockchain technologies within regulated financial frameworks.
