Digital asset manager Cobo has raised $ 40 million to advance institutional pathways to decentralized financial products, providing compelling evidence that more Asia-Pacific investors are seeking secure access to the DeFi marketplace.
The Series B funding will be used by Cobo to develop the world’s first DeFi-as-a-service, or DaaS, infrastructure that enables institutions and their clients to access decentralized funding products in a compliant manner, the company. More specifically, capital will be deployed to acquire regulatory licenses and ensure that anti-money laundering guidelines are followed on all products.
Cobo further explained that DaaS gives institutions more secure exposure to DeFi smart contracts without needing to understand the complexities of the market.
The investment round, which was led by DST Global, A&T Capital and IMO Ventures, builds on a successful Series A fundraiser that generated $ 13 million for Cobo in October 2018. The Singapore-based company was founded in 2017 as a full blockchain infrastructure provider.
Cobo Founder and CEO Discus Fish said the new DaaS infrastructure is being developed at a time of growing demand for crypto assets in Asia. Despite a general ban on crypto trading and mining in China, Asia is home to several vibrant crypto markets, including Japan, Korea, and most recently Vietnam. In more advanced Asian markets, cryptocurrencies are considered an investable asset class, but in emerging countries like Vietnam, Malaysia, and the Philippines, remittances are a major driver of adoption.
Related: Is the cryptocurrency epicenter moving away from East Asia?
Cobo primarily serves institutional investors in the Asia-Pacific region. Currently, its clients include over 1,000 institutional investors, once again highlighting the demand for smart money for crypto assets in the region.
Crypto and traditional assets have seen extreme volatility in recent days over fears that Chinese real estate developer Evergrande is on the verge of default. On Wednesday, it was reported that the indebted developer had “resolved” a planned payment issue, easing some of the selling pressure on risky assets like stocks and cryptocurrencies.