Blockdaemon, a prominent player in the cryptocurrency infrastructure sector, has recently announced its acquisition of expand.network, a pivotal API connection that simplifies access to the diverse landscape of decentralized finance (DeFi). This strategic move aims to facilitate seamless on-chain trading for major financial institutions.
A Major Investment in DeFi Connectivity
While the exact financial details of the acquisition remain undisclosed, Blockdaemon has indicated that the transaction was valued in the double-digit millions. Expand.network delivers vital API access to DeFi, establishing connections to over 170 endpoints, including decentralized exchanges (DEXs), bridges, lending protocols, and oracles. This extensive network positions Blockdaemon to help institutions navigate the complexities of DeFi.
The Shift Towards On-Chain Finance
As the long-anticipated regulatory clarity begins to emerge in the U.S. crypto landscape, banks and large financial institutions are increasingly exploring entry points into on-chain finance. This trend reflects a broader industry shift towards integrating traditional finance with innovative blockchain technology, presenting unique opportunities for institutional players.
Blockdaemon, which is already backed by prestigious firms like Goldman Sachs, supports approximately 70% of the top 500 institutions active in the crypto space. The company operates over 250,000 nodes across 40 data centers and manages various services, including staking rewards. Recently, it has also introduced cross-blockchain, self-custody wallet offerings tailored for institutional clients.
Unlocking the Potential of DeFi for Institutions
According to Konstantin Richter, the founder and CEO of Blockdaemon, the next logical step for banks and financial institutions is to provide streamlined access to the intricate world of DeFi lending, borrowing, and automated liquidity through Blockdaemon’s interoperable, staking-ready wallets.
Richter emphasizes the transformative potential of DeFi, stating, “DeFi will make running financial infrastructure a lot cheaper for banks and institutions, and it’s where many institutional benefits will reside over time.” He acknowledges that while the industry is still in its early stages, and regulatory clarity and broader adoption are needed, now is the ideal time to enhance this vertical within Blockdaemon’s product offerings.
In conclusion, Blockdaemon’s acquisition of expand.network represents a significant step towards bridging the gap between traditional finance and the burgeoning world of decentralized finance. By empowering institutions with advanced tools and resources, Blockdaemon is poised to lead the charge into a new era of financial innovation.
UPDATE (March 19, 13:10 UTC): changes from Expand to expand.network.
