Digital asset platform Coinchange has raised $10 million in Series B funding to scale its API-based yield service for bitcoin (BTC), ether (ETH), and major stablecoins.
The round was led by G1.VC, Spirit Blockchain, Good News Ventures, K2.CA and Atoia Ventures, with Mintfox also participating, according to an email announcement on Wednesday.
The Toronto-based company is targeting other companies, primarily crypto exchanges, that want to offer trading and performance to their clients. Coinchange offers this through its Earn API service to provide yield production strategies in decentralized finance (DeFi) markets. An API, or application programming interface, allows one computer to query and retrieve information from another.
Coinchange’s assets are managed on-chain, meaning there is no need for centralized counterparties for custody or lending, reducing counterparty risk for clients, the firm said.
Such risks were highlighted in the fallout from the FTX collapse in November last year, which spread to other centralized platforms with exposure to the failed exchange. For example, lender Genesis, Gemini’s partner in the program, froze more than $1 billion to some 232,000 users of Gemini’s Earn service. Genesis filed for bankruptcy in January 2023 and was owed more than $226 million by FTX.
Read more: Genesis sues Gemini to recover ‘preferential transfers’ worth $689 million
