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August's New Funding Round: A Testament to Institutional Trust in Crypto

In a significant development for the cryptocurrency market, August, an on-chain prime brokerage and execution platform, has announced a successful $10 million Series A funding round. Led by Dragonfly Ventures, this funding, which also included participation from notable investors like 6th Man Ventures, SCB Limited, and Robot Ventures, underscores a growing interest from institutions in the crypto space.

The Growing Financial Landscape of On-Chain Solutions

August has positioned itself as a vital player in the cryptocurrency landscape, boasting a monthly transaction volume exceeding $7 billion across various operations, including lending, DeFi transactions, and algorithmic swaps. This surge in activity demonstrates the recovery of digital assets following the turbulence of traditional finance, especially after the failures of notable centralized finance platforms like FTX.

Co-founders Aya Kantorovich and Alexandre Elkrief emphasize that the necessity for transparency and robust risk management solutions have never been more critical. With this new funding, August aims to enhance its infrastructure, enabling seamless utilization of staked assets as collateral for a variety of financial products.

What August Provides to Institutions

August's capabilities extend far beyond typical brokerage functions. The platform supports more than 12 blockchains and over 250 tokens, enabling comprehensive financial services including:

• - Smart contract multi-signature accounts
• - Trade execution
• - Borrowing and lending options
• - Derivatives trading and structured products
• - Cross-margining strategies

This innovative approach allows institutions to hedge their decentralized finance (DeFi) portfolios efficiently while benefiting from the security of traditional finance (CeFi) frameworks all within a single on-chain account.

Reshaping Institutional Crypto Trading

The increasing volume of transactions on-chain is not coincidental; it reflects a response to the limitations and risks associated with traditional finance. As co-CEO Kantorovich pointed out, the failures of established platforms like 3AC and FTX were not due to a lack of institutional interest in digital assets but rather because of unmanageable counterparty risks and a lack of transparency. August’s infrastructure aims to alleviate these issues by integrating real-time risk assessments and transparent collateral management solutions.

Looking Ahead: The Future of Finance

This funding round stands as a monumental step for August as it combines the agility and innovation of DeFi with rigorous risk management protocols demanded by major financial institutions. With Upshift, its first decentralized application boasting a total value locked of around $300 million, August exemplifies the bridging of DeFi and mainstream finance.