ConsenSys seeks to expand its DeFi projects on Ethereum and raises US $ 65 million for it

ConsenSys recently announced that it would advance the convergence of DeFi and Web3 applications on Ethereum. To do this, it raised US $ 65 million from companies such as JPMorgan and Mastercard. This round of financing constitutes the first external financing of ConsenSys. Web3 refers, in the context of Ethereum, to decentralized applications or dApps that run on blockchain platforms.

They also stated that: “ConsenSys products are the primary access points to the Ethereum network for developers, businesses and consumers, making Web3 more accessible and useful.” But why is the investment in Web3 and DeFi relevant? Keep reading.

First, DeFi platforms, predominantly built around Ethereum, have reached $ 56 billion in total locked value (TVL). This represents a considerable increase from last year, when it was $ 844 million. We would be talking about a growth of 6.535% in 12 months.

Who participated in the ConsenSys funding round for their DeFi projects on Ethereum?

Little by little more companies begin to show more interest in the world of cryptocurrencies. Among those who participated in the financing round organized by ConsenSys for its DeFi projects on Ethereum we have JPMorgan, Mastercard and UBS. All this according to a ConsenSys press release. Likewise, the participation of blockchain technology startups such as Protocol Labs, Fenbushi, and Alameda Research was registered.

However, this is not the only project that Consensys has been developing. For example, in August 2020 JPMorgan ceded its Quorum enterprise blockchain project to Consensys. Details and amounts negotiated were not disclosed at the time. However, Consensys founder and director Joseph Lubin claimed that JPMorgan had made “a strategic investment.”

Lubin claimed that Consensys’ partnership with prominent financial institutions and cryptocurrency startups would facilitate “further integration of centralized and decentralized finance, especially at this time of expansion for Consensys and the entire crypto industry.”

Other company changes

On the other hand, Consensys has also been making internal changes. For example, in February 2020, the company restructured into two business units. The first would be focused on software development around its main products. The second is a financing arm called Consensys Investments.

It’s no wonder that ConsenSys has chosen to expand its projects on dApps. This industry has grown more than 600% in one year. Possibly all of this has been achieved thanks to the momentum of activity in DeFi and the growth of the market for non-fungible tokens or NFTs.

Did you like the content? Share it