Huobi Group is deploying $100 million into decentralized finance (DeFi) projects as well as mergers and acquisitions through its new consolidated investment arm.
The investment arm, Huobi Ventures, is a wholly owned subsidiary of Huobi Group focused on boosting the firm’s investment portfolio and providing long-term support for innovative blockchain projects, according to a press statement shared with CoinDesk on Thursday.
In addition to supporting early-stage blockchain projects over a three-year period, Huobi’s $100 million fund will also be used to make strategic acquisitions to grow the firm's product offerings, according to the statement.
“Acquisitions will be integrated into Huobi’s growing suite of blockchain-enabled applications and services to expand the business into new markets. The venture capital unit will make long-term investments in emerging blockchain use cases and DeFi projects,” the statement said.
Huobi Ventures is also setting up a $10 million NFT fund focused on investing in non-fungible token (NFT) collectibles and marketplaces, the firm said.
The new investment arm also consolidates a number of the firm’s many investment vehicles, including Huobi Eco Fund, Huobi Capital and Huobi DeFi Labs, into a single entity, according to the statement.
“We have had separate teams focus on different investment strategies, but by bringing everyone together under a single entity, we can create a more cohesive strategy and continue to invest in and support the most innovative projects that are shaping the blockchain and DeFi spaces,” said Lily Zhang, Huobi Group CFO.
To date, the company has invested $69.42 million in blockchain, media, stablecoin and other projects, according to the statement.
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.