Blockchain technology developer Compound has secured $8.2m in its seed funding round.
Bain Capital Ventures, Andreessen Horowitz and Polychain Capital led the round, with participation also from Transmedia Capital, Compound Ventures, Abstract Ventures, Danhua Capital and Coinbase.
Founded in 2017, the company is looking to create a money market for cryptographic assets. The platform, which is yet to launch, will enable individuals, institutions and applications to earn interest on Ether, stablecoins and utility tokens. Interest will be similar to the overnight rate for dollars and government currencies, according to Compound.
Built on the Ethereum blockchain, the platform is a series of smart contracts which use algorithms to adjust interest rates for assets in real-time when borrowing demand for assets alters. Compound is expecting to launch the service by the end of 2018.
Polychain Capital founder & CEO Olaf Carlson-Wee said, “Spot interest rates are a financial primitive, and necessary for the evolution of decentralized markets. Compound’s goal is to become permanent infrastructure…A company that survives a hundred years.”
This investment marks Andreessen Horowitz seventh FinTech investment this year. Last month, the firm took part in the $125m Series D funding round into digital transformation company Mesosphere.
Other companies in its portfolio include cryptocurrency with an algorithmic central bank Basis, blockchain technology developer for private securities Harbor and real estate loan investment platform PeerStreet.
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