One of the world’s largest trading platforms by volume called Huobi Global has come up with a fresh venture capital arm. It aims to invest in Web 3, an upcoming blockchain, and DeFi (decentralized finance) projects.
The recent investment arm is called Ivy Blocks and has crypto assets worth over 1 billion USD under management for deployment. Huobi’s spokesperson confirmed the news. The funds had been set aside for investment in encouraging blockchain projects. The company has issued a statement that said so.
The offerings of Ivy Block through this fund will not be restricted only to investments. The VC arm has plans to set up a platform for asset management. It is also planning to open a specialized research arm to run blockchain initiatives and a blockchain incubator.
Lily Zhang, the chief financial officer of Huobi Global, mentions that the asset management division of the company would be making “liquid” investments”. These investments will help the start of initiatives, such as Web 3 and DeFi.
What is Web3?
Web3 has emerged as a popular nascent sector, with several VC firms and crypto exchanges joining hands. Thus, Ivy Blocks, as the crypto exchange calls it, will try to nurture and incubate decentralized and Web3 finance projects, which appear promising.
An official public relations statement from the company mentions that Ivy Blocks will have a reserve fund worth multi-billion-dollar to fulfill its aim. Ivy Blocks is planning to launch 3 core services to support these ambitious projects, typically in their nascent or growing phases.
The services also include a research-driven platform for cryptocurrencies, an incubation division to facilitate innovations, and DeFi projects. Companies can opt for all the above services under the care of Ivy Blocks.
The company is focusing on DeFi at a time when the overall value of the sector has diminished by over 50 percent from its peak.