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Veda, a leading DeFi vault platform, has secured $18 million in funding to expand its crosschain yield product offerings, including innovative yield-bearing stablecoins.
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The funding round was spearheaded by CoinFund and included prominent investors such as Coinbase Ventures and Animoca Ventures, underscoring strong institutional confidence in Veda’s growth potential.
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According to COINOTAG, Veda’s co-founder Sun Raghupathi emphasized the platform’s role in simplifying Bitcoin yield generation, a complex yet highly sought-after opportunity in decentralized finance.
Veda raises $18M to boost DeFi vault adoption, focusing on crosschain yield products and yield-bearing stablecoins amid growing demand for Bitcoin yield solutions.
Veda’s Strategic Funding Boost Accelerates Crosschain Yield Innovation
In early 2024, Veda emerged as a pioneering protocol enabling asset issuers to create diverse DeFi products such as liquid staking tokens, yield-bearing savings accounts, and stablecoins. The recent $18 million funding round, led by CoinFund with participation from Coinbase Ventures, Animoca Ventures, and others, marks a significant milestone in Veda’s development trajectory. This capital injection is set to accelerate the adoption of Veda’s vault platform, which currently supports some of the largest vaults in the crypto ecosystem, including Ether.fi’s Liquid and Mantle’s cmETH.
With over $3.3 billion in total value locked (TVL), Veda has demonstrated robust growth and market acceptance. The platform’s ability to tokenize a broad spectrum of DeFi assets positions it uniquely to capitalize on the increasing demand for yield products that span multiple blockchains, enhancing liquidity and user access.
Addressing Bitcoin Yield Generation Challenges Through Strategic Partnerships
Bitcoin yield generation remains a complex area within DeFi due to the asset’s unique characteristics and security considerations. Veda’s co-founder and CEO, Sun Raghupathi, highlighted the high demand for reliable Bitcoin yield despite the operational challenges involved. To tackle this, Veda has partnered with Lombard, the developer behind Babylon’s liquid-staked Bitcoin, to streamline yield opportunities for BTC holders.
This collaboration exemplifies Veda’s commitment to delivering practical solutions that reduce complexity and improve user experience in Bitcoin yield farming. It also aligns with broader industry trends, as seen with Kraken’s recent integration of Bitcoin staking services via Babylon, signaling a growing ecosystem focus on unlocking Bitcoin’s yield potential.
The Rising Influence of Yield-Bearing Stablecoins in DeFi
CoinFund’s investment in Veda reflects a broader conviction about the accelerating adoption of stablecoins and their evolving role in wealth management onchain. David Pakman, CoinFund’s managing partner, articulated that the next phase for digital assets involves making them productive through yield generation, whether they represent fiat or crypto assets.
Yield-bearing stablecoins are increasingly viewed as a disruptive force against traditional banking products. Pakman described them as an “inevitability” that offers a more convenient and accessible method for earning low-risk returns compared to conventional savings accounts and money market funds. This shift could compel traditional financial institutions to innovate or risk obsolescence as onchain financial products gain traction.
Stablecoin Market Dynamics and Future Outlook
The stablecoin sector continues to expand rapidly, with Circle’s USDC and Tether’s USDT dominating market capitalization at $61 billion and nearly $156 billion respectively. Industry leaders like Circle CEO Jeremy Allaire predict an imminent “iPhone moment” for stablecoins, indicating a tipping point toward mainstream adoption.
As yield-bearing stablecoins gain prominence, they are poised to become integral components of decentralized financial infrastructure, potentially reshaping how individuals and institutions manage liquidity and generate returns. This evolution is further supported by regulatory and technological advancements aimed at integrating stablecoins more deeply into the global financial system.
Conclusion
Veda’s successful $18 million funding round underscores the growing investor confidence in DeFi platforms that enable crosschain yield generation and yield-bearing stablecoins. By addressing Bitcoin yield complexities and fostering innovation in stablecoin products, Veda is well-positioned to drive significant advancements in decentralized finance. As the stablecoin market matures and demand for productive digital assets rises, platforms like Veda will play a crucial role in shaping the future of onchain wealth management.
