Blue, which offers know-your-customer (KYC) and anti-money-laundering (AML) identity verification products for traders on decentralized-finance (DeFi) protocols, has come out of stealth with $3.2 million in funding.
The announcement comes as interest in DeFi, a term used to refer to lending, trading and other financial activities carried out on a blockchain without traditional middlemen, has reached new heights in the wake of centralized cryptocurrency exchange FTX’s collapse late last year and a series of crypto exchange bankruptcies earlier in 2022.
Blue will use the funding to complete security audits from Halborn and Verilog Solutions. The rest of the money will go into expanding Blue’s core team and bringing the company’s permissioned DeFi product to market in the first quarter.
The company has already begun working on several proof-of-concept projects with major DeFi protocols, which it will announce in the coming months, Blue co-founder and CEO Casper Yonel said.
Reg S refers to a Regulation S offering that allows a company to issue equity or debt and to use an online method to raise capital from U.S. investors
Blue has built out its permissioned DeFi offering, which assigns “Blue IDs” to users who are then verified by a team of credential issuers.
The company was the finalist at the ETHDenver ‘22 Hackathon last March. Since then, the firm has also participated in other programs such as Outlier Venture’s DeFi Base Camp Accelerator, crypto exchange Binance’s Most Valuable Builder program and Startup with Chainlink’s incubator.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups 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, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.