Financial institutions

Amberdata raises $30 million to give financial institutions a glimpse of Web3

Blockchain asset market analytics firm Amberdata Inc. today announced that it has raised $30 million in new funds led by Knollwood Investment Advisory to expand its operations in response to growing institutional interest in the Web3 and decentralized finance.

This Series B funding round brings the total raised by the company to $47 million to date, including a Series A funding round of $15 million in September. The round included investments from Coinbase, Nexo, Nasdaq Ventures, Citi and others.

Amberdata claims that its products provide deep insights into decentralized financial markets for the world’s largest financial institutions. DeFi is part of Web3, the Decentralized Web, which uses self-executing software on blockchains to create financial instruments that work peer-to-peer without the need for banks or intermediaries.

“The rate of institutional adoption of crypto is truly staggering,” Amberdata Chief Executive Shawn Douglass said. “We have seen our revenues double in the first quarter of this year as the world’s largest financial institutions come to us for the critical data they need for research, trading, risk, analytics, reporting and compliance when accessing digital assets.”

According to DeFi analytics website DefiFiPulse, the total value locked in the market was around $10 billion in January 2020 and peaked at over $100 billion in November 2022. The market value has since dropped to around $74 billion this month.

This value is tied to people using many DeFi apps that allow them to buy tokens, trade them, and use them as financial instruments. For example, there are decentralized applications that act as interest-bearing accounts, allow users to take out loans, trade tokens on margin, or act as other financial instruments, such as derivatives.

It’s still early days for DeFi, but many large and small financial institutions have started to see the value in digital assets. As a result, Amberdata wants to position itself to demystify the role of data in Web3 and blockchains to provide deep insights into token economies so they can invest safely.

“Institutional demand for digital assets has gone parabolic during this market cycle, and Amberdata’s data analytics solution gives institutional investors the business intelligence they need to meet clients’ information needs. and owners,” said Tatiana Metodieva, Head of Corporate Finance and Investments at Nexo.

When it comes to Web3 and DeFi, every transaction that occurs is publicly stored in blockchain ledgers, sometimes across multiple blockchains. This provides a large, constantly updated set of data that must be well integrated for any institution to make full use of Web3 digital assets. Large institutions will need the right tools to manage their cash and accounts, as well as to comply with regulations and do taxes.

Amberdata is not alone in working to provide investors with analysis of DeFi data to help them make better investment decisions. Treehouse Finance, which offers its products to mainstream investors and institutions, raised an $18 million seed round in March.

“Amberdata is poised for massive growth and this funding will allow us to accelerate the expansion of our global go-to-market business, scale our state-of-the-art data infrastructure and strengthen our customer success team from world class,” Douglass said.

Photo: Pixabay

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