According to information provided by the CoinDesk website, the digital asset platform Coinchange has successfully raised over $10 million in a Series B funding round. Their aim is to expand their API-based yield service for Bitcoin, Ethereum, and major stablecoins.
The funding round was led by G1.VC, Spirit Blockchain, Good News Ventures, K2.CA, and Atoia Ventures, with Mintfox also participating, as stated in an email announcement last Wednesday.
Based in Toronto, the company is targeting other businesses, primarily cryptocurrency exchanges, that wish to offer trading and yield services to their clients. Coinchange provides this through its Earn API service, delivering yield-farming strategies in decentralized finance (DeFi) markets.
Essentially, an API, or Application Programming Interface, allows one computer to query and retrieve information from another. This is highly useful when dealing with multiple data sources and large volumes of information. It significantly streamlines the process of accessing information, exponentially improving the usability and scalability of projects utilizing it.
Coinchange is Zero Risk for its Clients
Coinchange manages assets on-chain, meaning there is no need for centralized counterparties for custody or lending. This reduces counterparty risk for clients, according to statements made by the company.
Such risks were highlighted following the collapse of FTX in November of last year. This had repercussions for other centralized platforms exposed to the bankrupt exchange. Over 230,000 users of the cryptocurrency exchange Gemini’s Earn service, for example, had over $1 billion frozen by the lender Genesis, Gemini’s partner in the program. Genesis filed for bankruptcy in January 2023, being owed over $226 million by FTX.
Coinchange aims to demonstrate that it lives up to expectations. Its success in securing external funding is a clear testament to the strong trust being placed in the company. In an environment where risks can be quite high. Finding a platform that stands out for its integrity, transparency, and service is essential.
