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

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

AccessTimeIconMar 29, 2021 at 1:01 p.m. UTC
Updated May 9, 2023 at 3:17 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

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 Voice' Makes Its Way to the Metaverse
    'The Voice' Makes Its Way to the Metaverse
  • Staking Has Been a Major Liquidity Sink for ETH: Coinbase Institutional
    Staking Has Been a Major Liquidity Sink for ETH: Coinbase Institutional
  • Fantom Token Jumps; Dolce & Gabbana Sued for NFT Deliveries
    Fantom Token Jumps; Dolce & Gabbana Sued for NFT Deliveries
  • What's the Key to Winning a Hackathon?
    What's the Key to Winning a Hackathon?
  • 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.


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

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.

    Read more about