Decentralized finance and blockchain investor ParaFi Capital ("ParaFi") today announced it has received a strategic investment from an affiliate of Galaxy Digital Holdings Ltd. (TSX: GLXY) ("Galaxy Digital"), a leading financial services and investment management company in the cryptocurrency and blockchain technology sector founded by Mike Novogratz.
With this transaction, Galaxy Digital has become a minority shareholder in the firm, joining other ParaFi investors including Bain Capital Ventures and Henry Kravis, Co-CEO and Co-Founder of KKR. As of August 31, 2020, ParaFi had assets under management of over $100 million.
ParaFi and Galaxy Digital expect to identify opportunities to jointly co-invest where they can leverage ParaFi's expertise in the decentralized finance ("DeFi") space together with Galaxy Digital's global insights and institutional relationships across its full-service platform encompassing Trading, Asset Management, Investment Banking, and Principal Investments. DeFi is an ecosystem of open financial products built on the blockchain and delivered as decentralized apps ("Dapps"). Much like the internet's impact on commerce and media in the preceding decades, DeFi solutions now hold the potential to reengineer financial services from the ground up by automating key activities within borrowing, lending, trading, payments, custody, insurance and asset management with the promise of broadening access, increasing transparency, and avoiding costly ongoing input from traditional intermediaries.
"Galaxy Digital looks for first-class partners with which to develop the crypto ecosystem with us, and ParaFi's like-minded investment team and sustained involvement in DeFi protocols and applications are a strong match for us," said Mike Novogratz, Founder, Chairman and CEO of Galaxy Digital. "ParaFi shares our views on the transformative potential of DeFi, our urgency to help this space accelerate toward deeper product-market fit, as well as our collaborative, expertise-driven approach to venture capital."
"Partnering with Galaxy Digital is an important milestone for ParaFi and the DeFi ecosystem as a whole," said Ben Forman, Founder and Managing Partner of ParaFi. "Programmable finance is a 'zero to one' innovation enabled by blockchain, and DeFi represents the nascent architecture for a new, open financial network. Galaxy has a strong track record of facilitating institutional interest in cryptocurrency and digital assets, as well as in working closely with leading companies in both fintech and traditional finance. As DeFi approaches an inflection point, we look forward to partnering closely with the Galaxy team."
ParaFi was founded by Ben Forman, previously an executive at private equity firms KKR and TPG. ParaFi began investing in DeFi in 2018, deploying capital behind leading protocols such as Compound (lending and interest accrual), Aave (asset borrowing), Uniswap (automated liquidity provision), and Synthetix (synthetic asset trading). In addition to investing in DeFi protocols, ParaFi actively supports its portfolio as a power user, liquidity provider, and governance participant. Examples of ParaFi's sustained involvement in the DeFi community include Andreessen Horowitz delegating its crypto fund's Compound governance rights to the firm, as well as ParaFi's active participation in monetary policy on the MakerDAO network.
"As a case study for empowering consumers in financial services, Bitcoin successfully demonstrated the market's demand for a digitally native, decentralized store of value. Now, as new decentralized finance applications begin to rapidly proliferate, the time is right to establish a nimble investment framework into DeFi architecture more broadly," said Christopher Ferraro, President of Galaxy Digital. "To successfully invest in this nascent and accelerating space requires active management and deep, multi-disciplinary knowledge across financial markets, economics, early-stage investing, community building and technology—all qualities that we believe the ParaFi team possess in abundance. Together with Galaxy's sector expertise and unique insight into DeFi token liquidity and markets through our Trading desk, we believe our partnership will be well-positioned to identify which applications and teams have the potential for exponential growth in DeFi."
About ParaFi Capital
ParaFi Capital is a fundamental, research-driven investment firm focused on investing in the blockchain and decentralized finance ecosystem. The ParaFi team has deep finance and technology backgrounds with over two decades of cumulative institutional investing experience at leading asset management firms, including KKR, TPG, and JPMorgan. ParaFi's investment approach focuses on digital assets that address tangible use cases, demonstrate signs of product-market fit, and exhibit compelling crypto-economic models. Additional information about ParaFi is available on www.parafi.capital.
parafi.capital
SOURCE ParaFi Capital LLC
With this transaction, Galaxy Digital has become a minority shareholder in the firm, joining other ParaFi investors including Bain Capital Ventures and Henry Kravis, Co-CEO and Co-Founder of KKR. As of August 31, 2020, ParaFi had assets under management of over $100 million.
ParaFi and Galaxy Digital expect to identify opportunities to jointly co-invest where they can leverage ParaFi's expertise in the decentralized finance ("DeFi") space together with Galaxy Digital's global insights and institutional relationships across its full-service platform encompassing Trading, Asset Management, Investment Banking, and Principal Investments. DeFi is an ecosystem of open financial products built on the blockchain and delivered as decentralized apps ("Dapps"). Much like the internet's impact on commerce and media in the preceding decades, DeFi solutions now hold the potential to reengineer financial services from the ground up by automating key activities within borrowing, lending, trading, payments, custody, insurance and asset management with the promise of broadening access, increasing transparency, and avoiding costly ongoing input from traditional intermediaries.
"Galaxy Digital looks for first-class partners with which to develop the crypto ecosystem with us, and ParaFi's like-minded investment team and sustained involvement in DeFi protocols and applications are a strong match for us," said Mike Novogratz, Founder, Chairman and CEO of Galaxy Digital. "ParaFi shares our views on the transformative potential of DeFi, our urgency to help this space accelerate toward deeper product-market fit, as well as our collaborative, expertise-driven approach to venture capital."
"Partnering with Galaxy Digital is an important milestone for ParaFi and the DeFi ecosystem as a whole," said Ben Forman, Founder and Managing Partner of ParaFi. "Programmable finance is a 'zero to one' innovation enabled by blockchain, and DeFi represents the nascent architecture for a new, open financial network. Galaxy has a strong track record of facilitating institutional interest in cryptocurrency and digital assets, as well as in working closely with leading companies in both fintech and traditional finance. As DeFi approaches an inflection point, we look forward to partnering closely with the Galaxy team."
ParaFi was founded by Ben Forman, previously an executive at private equity firms KKR and TPG. ParaFi began investing in DeFi in 2018, deploying capital behind leading protocols such as Compound (lending and interest accrual), Aave (asset borrowing), Uniswap (automated liquidity provision), and Synthetix (synthetic asset trading). In addition to investing in DeFi protocols, ParaFi actively supports its portfolio as a power user, liquidity provider, and governance participant. Examples of ParaFi's sustained involvement in the DeFi community include Andreessen Horowitz delegating its crypto fund's Compound governance rights to the firm, as well as ParaFi's active participation in monetary policy on the MakerDAO network.
"As a case study for empowering consumers in financial services, Bitcoin successfully demonstrated the market's demand for a digitally native, decentralized store of value. Now, as new decentralized finance applications begin to rapidly proliferate, the time is right to establish a nimble investment framework into DeFi architecture more broadly," said Christopher Ferraro, President of Galaxy Digital. "To successfully invest in this nascent and accelerating space requires active management and deep, multi-disciplinary knowledge across financial markets, economics, early-stage investing, community building and technology—all qualities that we believe the ParaFi team possess in abundance. Together with Galaxy's sector expertise and unique insight into DeFi token liquidity and markets through our Trading desk, we believe our partnership will be well-positioned to identify which applications and teams have the potential for exponential growth in DeFi."
About ParaFi Capital
ParaFi Capital is a fundamental, research-driven investment firm focused on investing in the blockchain and decentralized finance ecosystem. The ParaFi team has deep finance and technology backgrounds with over two decades of cumulative institutional investing experience at leading asset management firms, including KKR, TPG, and JPMorgan. ParaFi's investment approach focuses on digital assets that address tangible use cases, demonstrate signs of product-market fit, and exhibit compelling crypto-economic models. Additional information about ParaFi is available on www.parafi.capital.
parafi.capital
SOURCE ParaFi Capital LLC
No Offer, Solicitation, Investment Advice, or Recommendations
This website is for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation for any security, nor does it constitute an offer to provide investment advisory or other services by FINYEAR.
No reference to any specific security constitutes a recommendation to buy, sell or hold that security or any other security.
Nothing on this website shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction.
Nothing contained on the website constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed on this website should not be taken as advice to buy, sell or hold any security. In preparing the information contained in this website, we have not taken into account the investment needs, objectives and financial circumstances of any particular investor.
This information has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors.
Any views expressed on this website by us were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change.
All information is subject to possible correction. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.
No reference to any specific security constitutes a recommendation to buy, sell or hold that security or any other security.
Nothing on this website shall be considered a solicitation or offer to buy or sell any security, future, option or other financial instrument or to offer or provide any investment advice or service to any person in any jurisdiction.
Nothing contained on the website constitutes investment advice or offers any opinion with respect to the suitability of any security, and the views expressed on this website should not be taken as advice to buy, sell or hold any security. In preparing the information contained in this website, we have not taken into account the investment needs, objectives and financial circumstances of any particular investor.
This information has no regard to the specific investment objectives, financial situation and particular needs of any specific recipient of this information and investments discussed may not be suitable for all investors.
Any views expressed on this website by us were prepared based upon the information available to us at the time such views were written. Changed or additional information could cause such views to change.
All information is subject to possible correction. Information may quickly become unreliable for various reasons, including changes in market conditions or economic circumstances.
Finyear : Future Finance, Fintech, DeFi | Daily News
Chaineum : The DeFi Company
HealthTech.Finance : Healthtech Investment Bank
Laurent Leloup : Blockchain & DeFi Advisor
Chaineum : The DeFi Company
HealthTech.Finance : Healthtech Investment Bank
Laurent Leloup : Blockchain & DeFi Advisor
Autres articles
-
La Payments Association EU lance son livre blanc « Paiements 2030 »
-
GP Bullhound annonce les lauréats des Allstars Awards 2024
-
Bitpanda propose les jetons de sécurité aux investisseurs particuliers avec la cotation du Steelcoin
-
Entretien | Mark Kepeneghian, Kriptown. "J'ai toujours eu comme projet de trouver un moyen d'aider à financer l'économie réelle"
-
Esker renforce sa gestion des risques fournisseurs grâce à un partenariat stratégique avec e-Attestations