Tendermint Launches $20M Venture Fund to Boost Development Across Cosmos

Tendermint says the fund will be the largest investment vehicle for the Cosmos ecosystem.

Mar 29, 2021 at 1:01 p.m. UTC
Updated Sep 14, 2021 at 12:33 p.m. UTC

As Cosmos enters its next chapter, one of the leading firms behind the interoperability network is rolling out a $20 million fund to support promising projects.

“We’re trying to lay the foundations for decentralized networks to flourish as part of Cosmos,” Tendermint CEO Peng Zhong told CoinDesk in an interview. “So, just providing another source of liquidity for people that want to build on our stack.”

The fund’s announcement is timed to the activation of Cosmos’ inter-blockchain communication protocol (IBC), a major milestone that went live earlier today. IBC enables distinct blockchains built on Tendermint Core to work together. The cross-chain flow of tokens could be a catalytic step for making financial products in the Cosmos network more widely used.

The company says the Tendermint Ventures fund, denominated in ATOM and IRIS tokens, will be the largest in the Cosmos ecosystem. 

“Tendermint Ventures is similar to ConsenSys Ventures,” Peng said, referring to the investments wing of Joe Lubin’s Ethereum workshop. “We're going to identify promising projects, building using Cosmos tech and provide venture capital to accelerate their growth.”

The fund is meant to complement other efforts in the ecosystem, such as the $10 million Terraform Capital fund announced in February. But where Terraform focuses on decentralized finance (DeFi) on just the Terra blockchain, Tendermint Ventures seeks broader reach.

"In the near term, we are focusing on creating a really robust DeFi ecosystem within Cosmos," explained Jin Kwon, the Tendermint chief of staff leading the new venture fund. "Our goal at the end of the day is that these projects that we bring in will be complementary to each other. So one may be doing something in one aspect of DeFi and another project will be to leverage that project."

Indeed, Terra, which recently launched a high-yield savings account known as Anchor, is among the early investments by Tendermint Ventures. To date, the fund has also invested in Regen, IRIS, B-Harvest and Tgrade.


Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
First a Hum and Then a Bang –Niagara Falls Residents Forced to Reckon With Crypto Mining

The city in New York has imposed a moratorium on new bitcoin mining operations as complaints about noise were compounded by an explosion and fire at a mining site last week.

The city in New York has imposed a moratorium on new bitcoin mining operations as complaints about noise were compounded by an explosion and fire at a mining site last week.

CoinDesk - Unknown
2
CoinDesk - Unknown
No es solo LUNA: las aplicaciones DeFi de Terra han perdido $28.000 millones

Los inversores han abandonado en gran medida el ecosistema Terra, ahora evidente en los protocolos DeFi en la blockchain, y los analistas siguen siendo escépticos sobre sus perspectivas a largo plazo.

Los inversores han abandonado en gran medida el ecosistema Terra, ahora evidente en los protocolos DeFi en la blockchain, y los analistas siguen siendo escépticos sobre sus perspectivas a largo plazo.

CoinDesk - Unknown
3
CoinDesk - Unknown
Crypto News Roundup for May 20, 2022

With bitcoin avoiding a steeper tumble and a look at what’s behind the biggest stablecoin of them all, CoinDesk’s "Markets Daily" is back with its latest news roundup.

With bitcoin avoiding a steeper tumble and a look at what’s behind the biggest stablecoin of them all, CoinDesk’s "Markets Daily" is back with its latest news roundup.

CoinDesk - Unknown
4
CoinDesk - Unknown
Bitcoin Drifts Lower, Support at $25K-$27K

BTC is roughly flat over the past week. Technical signals suggest a neutral to bearish outlook.

BTC is roughly flat over the past week. Technical signals suggest a neutral to bearish outlook.

CoinDesk - Unknown