DeFi firm Violet nets $15m, launches compliant decentralised exchange


Violet, a provider of privacy-protective compliance and identity infrastructure for DeFi, has bagged $15m in a funding round and launched a compliant decentralised exchange.

The company claims Mauve is the ‘world’s first compliant decentralised exchange purpose-built to offer the best of both DeFi and TradFi to the crypto markets.

The round saw participation from BlueYard Capital, Ethereal Ventures, FinTech Collective, Balderton, Coinbase Ventures and Brevan Howard amongst others.

Founded in 2021, Violet claims it is focused on helping DeFi fulfil its potential to become the default financial system of the 21st century. To facilitate this transition, the Violet team has designed and built privacy-protective compliance infrastructure that is directly embedded on the blockchain.

Mauve requires its users to undergo rigorous compliance checks. These checks ensure compliance-conscious users, who are currently restricted to centralized and custodial exchanges, feel confident migrating to DeFi. Fully transparent and governed by audited smart contracts, users can trade with instant settlement, without relying on intermediaries.

Violet claims Mauve brings the benefits of DeFi and TradFi together to empower crypto investors globally. The solution utilizes DeFi architecture to enable self-custody that ensures funds remain the property of their true owner, not a separate custodian. From a TradFi standpoint, the platform offers its users TradFi-level compliance guarantees to drastically reduce counterparty risk.

Mauve relies on Violet’s on-chain compliance infrastructure, which issues privacy-preserving compliance credentials, in addition to leveraging multi-factor authentication for security and identity continuity. The credentials are composable across other applications, and will ultimately position Mauve to be the cornerstone of a far-reaching compliant DeFi ecosystem that leverages Violet credentials.

The company said it plans to use the newly raised capital to accelerate the global adoption of the Mauve platform.

Violet co-founder Markus Maier said, “Mauve is a direct response to the FTX fallout, which has significantly eroded trust in crypto globally by misappropriating funds. The future is dependent on the continued adoption of non-custodial crypto exchanges. Mauve empowers its users to trade without surrendering custody of their assets. This means no one can access, much less steal, any retail or institutional investor’s funds, helping to restore confidence among market participants.”

Violet co-founder Philipp Banhardt said, “We envision a future without intermediaries where all financial products and services run on decentralized crypto rails. This vision requires deep integration between TradFi and DeFi, and is the reason why we started Violet and now Mauve. We are excited to partner with other builders as we advance on our mission to evolve trust in DeFi, towards more robust and sustainable growth going forward.”

Cubist, a security-focused Web3 dev tools provider, recently scored $7m in a seed funding round headed by Polychain Capital.

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