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Multicoin Capital has lead a $1.5 million fundraising round in top Chinese DeFi "super-app" platform dForce.
Blockchain and cryptocurrency venture capital firm Multicoin Capital has led a $1.5 million seed round for Chinese decentralized finance (DeFi) protocol dForce.Ā
Mable Jiang, the principal of crypto venture capital firm Multicoin Capital, told Cointelegraph that dForceās plan to launch a "super-app"-styled DeFi platform in the Asian market was a major factor in the firmās decision.
An Asian super app like WeChat
Jiang emphasized dForceās presence within the Asian and Chinese markets as a draw, stating, āWe always believed that Asia, and more specifically China, will become a pivotal market for the adoption of Open Finance.ā She said that dForce's project "is more aligned with the Asian user behavior.ā
The protocol is building what Multicoin describes as āthe first āsuper-networkā of DeFi protocolsā ā likening the platform to Asiaās leading super-apps such as WeChat and Alipay.Ā
According to Defipulse, dForce is currently the seventh-largest DeFi platform by locked funds with $23.9 million invested into its two protocols ā stablecoin USDx, and lending protocol Lendf. DForce is reportedly the largest platform for stablecoin lending in China.
Huobi Capital and China Merchant Bank International (CMBI) also participated in the round, with CMBI having exclusively invested in dForceās last fundraising round.
Chinaās nascent DeFi sector
Jiang stated that she first met dForceās founder during the summer of last year:
āI've been following dForce's development since then and saw their impressive growth in their first money market protocol Lendf.me. Last December in a catch-up session I had with their early investor CMBI, I got very excited about their vision of becoming a global network of DeFi protocols with a Chinese Launchpad.āĀ
She said that dForce was then ālooking for a strategic investor that could bring them resources that they need for further expansion.ā Jiang describes the partnership as mutually beneficial, noting that dForce has facilitated Multicoin establishing further connections in China.
Despite her optimistic expectations for dForceās growth in China, Jiang noted that DeFi in the country is still in its early stages of development, adding that greater education regarding the sector is needed to drive widespread adoption.
Through allowing its protocol to be accessed through popular front-ends like exchanges and wallets, Jiang expects that dForce will continue to drive Chinese DeFi adoption.
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