Alloy and the Future of Institutional DeFi

Paul Faecks
November 14, 2022
5 min read

Announcing our 2.6m€ pre-seed round with Headline, Seedcamp, Zinal Growth, Cocoa, and 20VC.

Decentralized finance, or DeFi, uses emerging technology to remove centralized third parties in financial transactions, allowing asset management, P2P borrowing/lending, derivatives, and payment solutions through secure distributed ledgers.

Despite having grown 5000% over the past year and transacting billions daily, the decentralized finance space is largely inaccessible to institutional investors who are facing challenges in both assessing risks and in dealing with the technological underpinnings of the space. Alloy is changing that by building a product that emphasizes security and complies with the strictest regulatory requirements- Developing a platform that allows investors to interact with existing DeFi protocols (facilitating e.g. lending, liquidity provision, and staking) through a safe and regulated front end. The experience will be similar to using a brokerage trading platform, but for the entire on-chain DeFi ecosystem.

Hundreds of millions of users will use DeFi in the coming years — many without even realizing it and digital assets will be part of practically every institutional investor's portfolio. We haven’t even seen the beginning of what is yet to come. The infrastructure for that to happen in a way that works seamlessly with the existing financial system doesn’t exist yet. So we’re building it.

The Platform will be live in Q3 2022 with a select number of family offices and funds throughout Europe and the US and will offer DeFi-specific financial services in various jurisdictions, in line with its vision of becoming the all-in-one Gateway for any investor to decentralized finance.

We are hiring aggressively across roles with a focus on tech & product. If you are interested in working with us, please check out our hiring page.

Our Pre-Seed Round

We are incredibly excited to announce that we have raised €2.6m in our pre-seed round from top VCs including, Headline (lead), Seedcamp, 20VC, and Cocoa — other backers include the founder of Sorare, Guillaume Pousaz’s Zinal Growth and Anagram Crypto*.

A few world-class angels participated in the round as well, we are incredibly grateful to have Nicolas Julia, Philippe Teixeira da Mota, JD Montgomery, Declan Kelly, Itay Malinger, Joe Cross, Chris Cable, David de Picciotto, Philipp Petrescu(MVP Factory), Raban von Spiegel, Magnus Hinkel, and Leon Marshall.

*founded by Joseph Eagan, ex Polychain president and Lily Liu, ex CFO of and president of the Solana Foundation

This is what some of our investors had to say:

“Alloy is coming in on the ground floor of the crypto-related fintech trends that we initially saw in the traditional financial ecosystem. Paul, Adrian, and Tim are bridging the gap between the mainstream economy and digital assets, allowing professional investors to understand and make use of highly technical tools. They are a young team of DeFi ‘insiders’ that perfectly fit the product they are building.” — says Dominic Wilhelm, Principal at Headline

Thanks, Dominic!

“Paul, Adrian, and Tim have been successfully surrounding themselves in all things DeFi over the past few years, with Paul and Adrian having top Degen Scores. Although they’re a young team, they have more experience in this space than any founders I have met to date, so backing them was a no-brainer for 20VC. I’m super excited to see Alloy come to the market later this year, changing the game for professional investors wanting to access this asset class.” — Kieran Hill (20VC)

We are incredibly grateful for the world-class people we are lucky to be on this journey with together. Let’s build the next chapter of DeFi.