Coinbase backs compliance-focused non-custodial exchange Mauve

Coinbase’s venture arm, Brevan Howard, and other investors invested $15 million in the non-custodial Mauve exchange, which includes compliance procedures. This is reported in the press release.

The developer of the new platform is Violet, a project specialising in identity infrastructure and decentralised finance.

“Mauve is a direct response to the fallout associated with FTX,” said the firm’s co-founder Markus Mayer.

According to him, collapse of the business empire of Sam Bankman-Fried has eroded trust in cryptocurrencies on a global scale. Mayer is convinced that the industry’s future depends on further adoption of non-custodial products like Mauve.

“That means that no one can access, let alone steal, the funds of retail or institutional investors. This helps restore trust among market participants,” he added.

The new DEX requires users to undergo \”strict compliance checks\”. In the developers’ view, this approach is meant to give confidence to users moving from centralized platforms to DeFi.

Earlier, the on-chain variant of the dark-pool startup Renegade raised $3.4 million in seed funding.