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DeFi-Focused Startup Blue Comes Out of Stealth With $3.2M Raise

DeFi-Focused Startup Blue Comes Out of Stealth With .2M Raise

Blue, which provides know-your-customer (KYC) and anti-money-laundering (AML) identity verification tools for traders using DeFi protocols, has emerged from the shadows with $3.2 million in funding.

According to a corporate blog post published Tuesday, the funds were raised in a seed round co-led by Block change Ventures and Fenbushi Capital, with participation from DoraHacks, Knollwood Investment Advisory, Gate.io, and Wave Financial.

The announcement comes as interest in DeFi, a term used to refer to lending, trading, and other financial activities conducted on a blockchain without the use of traditional intermediaries, has reached new heights in the aftermath of the collapse of centralised cryptocurrency exchange FTX late last year and a series of crypto exchange bankruptcies earlier in 2022.

Blue will utilise the funds to conduct Holborn and Verilog Solutions security audits. The remaining funds will grow Blue’s core team and bring the company’s permission DeFi solution to market in the first quarter.

Blue co-founder and CEO Casper Yonel stated that the business has already begun working on many proof-of-concept projects with key DeFi protocols, which will be announced in the coming months.

“We have basically a fairly wide assortment of clients that are interested in the product. “We have institutions, banks, on-ramps, liquid staking solutions, and Reg S issuers,” Yonel explained to CoinDesk. “There are several use cases for various types of clients.”

A Regulation S offering is one that allows a corporation to issue equity or debt and raise funds from US investors through an internet channel.

Blue has expanded its permissioned DeFi product, which gives “Blue IDs” to customers before they are confirmed by a team of credential issuers.

Last March, the startup was a finalist in the ETHDenver ’22 Hackathon. Since then, the company has taken part in a variety of programmes, including Outlier Venture’s DeFi Base Camp Accelerator, Binance’s Most Valuable Builder programme, and Startup with Chainlink’s incubator.

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