- The cryptocurrency startup raised 25 million for creating a p2p lending platform.
- The company will allow crypto lenders and borrowers to make deals on the platform.
The San Francisco-based startup Compound has raised $25 million from a venture capital firm Andreessen Horowitz. Compound is working on a decentralized finance protocol (DeFi) for P2P leading. The platform developed by Compound is a place where crypto borrowers and lenders can find each other and use smart contracts technology to lend and borrow digital assets.
Bain Capital Ventures, Polychain Capital and Paradigm are among other investors of the company that is currently valued at $150 million.
“Compound is a lending protocol that is open to anyone in the world, that disintermediates banks and allows anyone to earn interest on their money. We’ve worked with Robert and his team for over two years and think they are world-class technologists and entrepreneurs,” Robert Leshner, Founder of Compound, commented in thee interview with Fortune.
He also added that the company wants to bring its services to the mass population via integration with major cryptocurrency exchanges such as Coinbase or Kraken.
Eventually, Compound plans to introduce decentralized governance to cater to the needs and values on cryptocurrency enthusiasts. Unlike traditional banking structures, Compound’s management cannot interfere with the lending protocol.
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