Bonded raises $2.25m for DeFi lending, borrowing products

By Sunniva Kolostyak

Bonded Finance, a decentralised finance (DeFi) platform, has completed its first funding round, securing $2.25 million in investments from venture groups including AAM, Spark Digital Capital, Blackedge and Rarestone Capital.

The private financing round will help Bonded continue to deploy DeFi instruments to leverage dormant capital and set the FinTech up for the launch of its inaugural product later this quarter.

The company, a blockchain-based platform, identified that the majority of crypto lending is transacted with BTC, ETH, and stablecoins, however, nearly $50 billion locked up in altcoins.

These currencies are still unserved and Bonded is creating an array of financial instruments to access these virtually stranded assets so users may lend altcoins, access lines of credit, as well as bundle assets and participate in risk-mitigated indices.

Through these solutions, Bonded is aiming to create innovative financial products by using decentralised technology, setting itself up to be at the centre of the evolving Open Finance space.

The investor group is a mix of venture funds, blockchain entrepreneurs and crypto community leaders.

Their participation will drive awareness and provide a runway for Bonded to execute on their initial roadmap, Paul Mak, Co-Founder and CEO of Bonded, said.

“Speculation drives much of the excitement around DeFi but the beating heart is the ability to experiment with trustless incentives and governance over protocols that people care about, in order to build sustainable and stable yield instruments,” he commented.

As Bonded prepares for its first product launch, the FinTech foresees yield opportunities for scores of promising projects that have existing liquidity and active communities but don not have the needed exposure to lending and borrowing platforms like Compound, Aave, and so on.

It believes providing DeFi benefits on a broader scale can serve to stabilise and add value to the asset class on the whole.