Coinbase and $20,000,000,000 Hedge Fund Back New Decentralized Crypto Exchange
Top US-based crypto exchange Coinbase is teaming up with a privacy-focused crypto firm to launch a new decentralized exchange (DEX) platform.
In a new press release, decentralized finance (DeFi) firm Violet says it plans to launch Mauve, a DEX built with features of both DeFi and traditional finance (TradFi).
The company will partner with several prominent investors, such as Coinbase Ventures, venture capital firm FinTech Collective and $20 billion hedge fund Brevan Howard.
According to Violet co-founder Markus Maier, the creation of Mauve was triggered by last year’s high-profile collapse of FTX, one of the largest crypto exchanges at the time. Maier says the FTX debacle reduced confidence in crypto globally, which he is trying to restore with Mauve.
“Mauve is a direct response to the FTX fallout, which has significantly eroded trust in crypto globally by misappropriating funds. The future depends on the continued adoption of non-custodial crypto exchanges. Mauve gives users the ability to trade without giving up custody of their assets.
This means that no one can access, much less steal, funds from private individuals or institutional investors, which helps restore confidence among market participants.”
From DeFi, Mauve will borrow architecture that allows self-custody to ensure investors own their assets. From TradFi, it will offer compliance guarantees and disclosure to reduce counterparty risk.
As stated by Philipp Barnhardt, one of Violet’s founders, in the press release,
“We envision a future without intermediaries where all financial products and services run on decentralized crypto rails. This vision requires deep integration between TradFi and DeFi, and is why we started Violet and now Mauve.”
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