Even though digital asset markets have been shaky, the blockchain sector continues to scale as demand increases from both crypto-native and traditional institutions looking to use the technology.
Layer-1 blockchain Injective has raised $40 million in a round led by Jump Crypto, Eric Chen, CEO and co-founder of Injective Labs, told TechCrunch. Brevan Howard Digital, the crypto arm of British billionaire hedge fund manager Alan Howard, also participated in the funding round.
The capital was raised by Injective and Injective Labs, a software development firm that supports the blockchain, to add new stakeholders to the ecosystem, Chen said. "It's really about bringing on valuable stakeholders rather than having more capital at hand."
The platform aims to optimize and build decentralized finance (DeFi) applications like exchanges, derivatives, prediction markets and options. It also produces financial decentralized applications (dApps).
"This is a fundamental piece of innovation and a fundamental paradigm shift that no one wants to be excluded from or too late on adopting. This is why we're so excited -- those who are making large efforts and commitments are innovating forward."
The new funds will be used to support incoming Injective developers as well as build critical toolkits, support softwares and core upgrades to expand its ecosystem, Chen said. It will also allow Injective to increase utility for its native token, INJ, and provide liquidity and support to dApps on its blockchain.
The raise will also support a broader effort to bring on more institutions and provide greater liquidity to DeFi, Chen said. "The ecosystem is institution-ready and excited for sophisticated liquidity coming in as well. It's a synergetic effort for broader adoption."
In recent months, there has been more DeFi interest and activity from traditional institutions and people in the traditional finance space, Chen said.
"This is definitely shown with financial service providers like investment banks, brokerage firms and asset managers regardless of market conditions," Chen said. "There's no sign of them slowing down."