Archimedes, which claims to be a one-of-a-kind lending and borrowing marketplace that utilises NFTs, has raised $4.9m in its seed round.
Hack VC, a venture capital firm aimed at crypto, FinTech and marketplaces, served as the lead investor. Other commitments came from Uncorrelated Venture, Psalion, Truffle Ventures, Cogitent Ventures, Haven VC, Palsar and others.
With the close of this seed round, Archimedes has raised a total of $7.3m in pre-launch funding.
Archimedes is a lending and borrowing marketplace that utilises NFTs and industry best practices. Leverage takers that use the platform are sent an NFT, which represents a yield-generating stablecoin position that has been leveraged at up to 10 times the principal collateral amount.
Its mission is to make capital efficient DeFi opportunities more accessible. Archimedes, which is open source, also hopes to become the go-to place for technical and non-technical users seeking high quality lending, borrowing and leverage solutions.
The company hopes to launch its lending and borrowing marketplace in February.
In other blockchain and cryptocurrency news, bitcoin infrastructure firm Blockstream raised $125m in a convertible note and secured loan financing. It raised the funds to expand its institutional mining colocation services and its renewable energy mining products.
Elsewhere, the UK government revealed new proposals to put cryptoassets in the same regulatory regime as traditional financial services. This would include bolstering rules for crypto trading and a robust regime for crypto lending by tightening rules around financial intermediaries and custodians.
Across the pond, the US regulators have also expressed a desire to increase crypto regulation. Four senior US officials in the White House called on the US Congress to ‘step up its efforts’ in regulating the cryptocurrency market. They urged Congress should expand the powers of regulators to prevent misuses of customers’ assets and mitigate conflicts of interest.
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