Leading cryptocurrency exchange Huobi has announced the creation of a new investment arm to address decentralized finance and Web3 projects Ivy Blocks, named by the exchange, is a seed stage It will focus on finding projects and helping them through financing and other support services with the goal of creating a “better, more inclusive” Web3 ecosystem.
Huobi enters the Web3 investment scene with Ivy Blocks
Web3 has become a thriving emerging industry with many crypto exchanges and VC firms joining the trend. Huobi, a top 10 cryptocurrency exchange by trading volume, has announced the launch of its own investment arm to tackle these new markets. Ivy Blocks, as the exchange has named it, will be responsible for identifying, incubating, and nurturing potentially successful Web3 and decentralized finance projects.
According to a PR statement released by the company, Ivy Blocks has a multi-billion dollar war chest to achieve its goals and is “the right place to capitalize on unique opportunities in the global cryptocurrency market.” To support these projects, ideally those in seed or growth stages, Ivy Blocks will launch three core services.
These services include an asset management platform for decentralized finance (defi) projects, an innovation-driven incubation arm, and a more research-driven crypto platform. All of these services will be made available to companies under the Ivy Block umbrella.
Financing Capabilities
Funding is a key component of an investment firm’s ability to support its portfolio companies, and Ivy Blocks’ operation is simple and seeks to provide this financial support to startups that often fail due to finance-related issues Ivy Blocks is simple. Lily Zhang, CFO of Huobi, describes the relationship the new company will have with the projects in which it invests.
Many promising projects tend to encounter liquidity constraints and lack of market access support, which are significant barriers to growth. Our focus on providing liquidity investment and incubation services to such projects will undoubtedly contribute towards creating a better and more inclusive defi and web3 blockchain ecosystem.
IvyBlocks has over 1 billion assets under management (AUM) from a number of already incubated companies. One of these is Capricorn Finance, an automated market maker (AMM) built on top of the Cube blockchain.
Other exchanges have also recently invested in the Web3 project. Binance Labs, the investment arm of the exchange, reported on June 3 that it launched a $500 million fund for the Web3 project.
Image credits: Shutterstock, Pixabay, Wiki Commons