Algorand Project Raises $3.6M to Make Cross-Chain DeFi Friendly for Big Investors

C3 will operate a cross-chain clearing engine in the same way prime brokers act as a hub for collateral management in traditional finance.

AccessTimeIconNov 22, 2021 at 5:00 p.m. UTC
Updated May 11, 2023 at 5:51 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

C3 Protocol, a cryptocurrency trading project linked to the Algorand blockchain, has raised $3.6 million in a funding round that was led by Arrington Capital and Jump Capital.

C3′s ambitious plan to allow decentralized finance (DeFi) liquidity to flow across blockchains was also backed by Golden Tree Asset Management, Cumberland, ParaFi Capital, Mechanism Capital, Borderless Capital, Node Capital and Digital Currency Group (the parent company of CoinDesk).

  • Why Sequoia Capital Is Raising $600M to Launch New Crypto Fund
    06:39
    Why Sequoia Capital Is Raising $600M to Launch New Crypto Fund
  • Twitter Joined $20M Funding Round for Bitcoin Payments Provider OpenNode
    06:14
    Twitter Joined $20M Funding Round for Bitcoin Payments Provider OpenNode
  • Twitter Joined $20M Funding Round for Bitcoin Payments Provider OpenNode
    06:14
    Twitter Joined $20M Funding Round for Bitcoin Payments Provider OpenNode
  • Polygon Raises $450M to Build Web 3 Applications, Invest in Zero-knowledge Tech
    06:55
    Polygon Raises $450M to Build Web 3 Applications, Invest in Zero-knowledge Tech
  • Cryptocurrency trading grew out of retail exchanges and developer-led blockchain projects, in contrast to legacy finance, which started with institutions building infrastructure that suited their needs. As such, the concept of prime brokerage in traditional finance – a bundle of services often offered by investment banks that includes lending, cash management and netting – is gradually being replicated in the cryptocurrency world.

    Algorand builders

    Founded by the Rand Labs team that built Algorand staples My Algo Wallet and AlgoExplorer, C3 is focused on creating a new layer for using collateral and margin across different blockchains, starting out by connecting collateral management Algorand and Ethereum, with the same cross-chain functionality also coming to Algrand and Solana.

    “The way Ethereum DeFi was built, every team tackled a separate vertical such as lending and borrowing, perpetuals or DEXs [decentralized exchanges],” C3 founder Michel Dahdah said in an interview. “But having all these different financial products isolated in terms of how they manage collateral makes it impossible for them to cross margin, meaning the collateral you’re using to borrow money for shorting, for example, can’t be used to also open a long position in a perpetuals financial product.”

    C3 will operate a “global clearing engine,” Dahdah said, so that users can lock collateral in one place and use it across a range of positions, in the same way that prime brokers act as a hub for collateral management in traditional finance.

    “C3 is an ambitious idea. It bridges the gap between TradFi and DeFi trading by completely rethinking how we manage collateral across both blockchains and DeFi protocols,” Ninos Mansor, partner at Arrington Capital, said in a statement. “They are taking on one of the biggest challenges in all of DeFi, a pain point that will continue to grow as DeFi becomes increasingly multi-chain.”

    Disclosure

    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.

    Ian Allison

    Ian Allison is an award-winning senior reporter at CoinDesk. He holds ETH.


    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