Galaxy Digital, the cryptocurrency trading bank led by Mike Novogratz, has become a minority shareholder in ParaFi Capital. The partnership envisages joint investments in the DeFi sector, as stated in a press release.
ParaFi Capital has been investing in DeFi projects since 2018. Its portfolio includes Compound, Aave and Uniswap. As of August 31, 2020, assets under management exceeded $100 million.
The deal value between Galaxy Digital and ParaFi Capital was not disclosed. Other investors in the firm include Bain Capital Ventures and Henry Kravis, co-founder of private equity firm KKR & Co.
In an interview with Bloomberg, Novogratz said that about 5% of Galaxy Digital’s capital has been invested in the DeFi sector.
“It’s not a very large portion. But we want to invest in cutting-edge technologies. I think DeFi will become a truly important part of the cryptocurrency ecosystem,” said the company’s CEO.
According to him, ParaFi shares Galaxy Digital’s views on the potential of DeFi. The partners plan to accelerate the industry’s development by leveraging their experience in decentralized finance and global ideas.
Earlier, Galaxy Digital and Bakkt announced the launch of a service for institutional investors.
Subscribe to ForkLog news on Telegram: ForkLog FEED — the full news feed, ForkLog — the most important news and polls.