German DeFi platform Alloy has won the backing of Checkout.com founder Guillaume Pousaz in a $3 million pre-seed round led by VC firm Headline.
In an announcement this morning, Alloy said Pousaz had invested via his family office Zinal Growth, alongside Sorare founder Nicolas Julia and Seedcamp.
Alloy is aiming to build a decentralized finance (DeFi) platform targeting institutional investors, which founder Paul Faecks says remain hesitant to participate in the DeFi ecosystem despite their interest.
"So most of the challenge is regulatory and on the client-side of things where the more sophisticated investors want a legal framework that allows them to deploy capital into DeFi but still have custody and KYC AML checks handled," he says, claiming that Alloy is one of the first companies in the EU to offer regulated DeFi strategies.
Alloy is able to do that because it is regulated via a partnership with a custodian, Faecks added. He says that the company is also looking at becoming regulated directly by BaFin, the German regulatory body. Much of the $3 million will go towards getting such an approval, along with building out the tech infrastructure behind the platform.
The platform, which will initially launch on the Ethereum network in the latter part of 2022, is looking to service funds and family offices, particularly those belonging to tech founders who already have knowledge of crypto.
Faecks says that the platform has five confirmed funds for launch based in the EU and the US.