Grayscale, a New York-based crypto fund describing itself as an authority in digital asset investing and cryptocurrency asset management, appears to be readying themselves for a DeFi future judging from their document submission for registration of several new trusts among them for a decentralized finance governance token, checks on Jan 28 shows.
Focus on Interoperability, DeFi, Privacy, and Smart Contracting?
Records at the Delaware corporate registry reveals that the world’s largest crypto fund filed for Aave (AAVE)—a DeFi governance token powering Aave, a protocol that’s behind the popular flash loan tools, as well as for Polkadot (DOT) and Cosmos (ATOM).
The latter are interoperable blockchains that analysts project to play a critical role in bridging blockchains for a more inter-connected web3.
Other trusts included are those for EOS, Cardano (ADA), and the privacy-focusing coin, Monero (XMR). Interestingly, Grayscale also appears to be laying the ground for Cardano, a project that’s still in development. Eventually, it aims to be a leading smart contracting platform with better decentralization than Bitcoin.
The fund may also open up Monero (XMR), a privacy coin, for institutional investors, a shot in the arm for its determined ecosystem. Law enforcement authorities claim to be used by criminals in money laundering.
It would further embolden developers to build more trustless bridges following the wave of liquidity sapping delisting from leading exchanges.
Preparing for a DeFi Future, Billions Locked in Ethereum Alone
Although Grayscale has since clarified that these registrations wouldn’t result in the automatic launch, observers maintain that institutions are increasingly aware of the role of smart contracting platforms, interoperability, and privacy.
Cardano and EOS, for instance, are leading smart contracting platforms with DeFi support. Meanwhile, Polkadot and Cosmos are building. The latter recently launched the Inter-Blockchain Communication (IBC) that links to different protocols.
All of them are in one way or another keen on building DeFi in their respective systems.
Already, the Aave protocol is one of the leading DeFi platform managing billions only trailing Maker. The lending and borrowing protocol commands a huge following and is building. It is one of the core platforms in the burgeoning DeFi space.
Following this news, the AAVE token is up 55 percent in the last week of trading.
As previously reported, several blockchains outside of Ethereum like the Kava Protocol and IOST are doubling down, building and striking partnerships to grow their respective DeFi protocols.