Blue, the platform that provides anti-money-laundering (AML) and know-your-customer (KYC) identity confirmation products to DeFi protocols, is now at the center of the community’s attention. The platform has collected nearly $3.2M worth of funding.

It raised the funds in a seed funding round. This was co-led by Fenbushi Capital and Blockchange Ventures in collaboration with Wave Financial, Gate.io, Knollwood, and DoraHacks.

DeFi-Centered Venture Called ‘Blue’ Raises Funds of $3.2 Million Worth

The platform disclosed the funding round in a blog post published recently. The declaration is witnessed at a time when the decentralized finance (DeFi) sector is getting a lot of attention. The term DeFi is utilized to denote the trading, lending, and the rest of the operations performed through a blockchain without the requirement of a conventional mediator.

This sector has touched new peaks after the notorious crash of FTX in 2022’s November. Blue will utilize the funds to accomplish the security audits to be conducted by Verilog Solutions and Halborn.

The remaining funds will be specified for the expansion of the core team of Blue. The platform has in advance started operating on many projects based on the proof-of-stake projects. For this, it is operating with prominent DeFi protocols.

The declaration about the respective projects will be made in the next months, as per Casper Yonel (the CEO and co-founder of Blue).

The executive stated that they are fundamentally dealing with a vast series of consumers that are showing interest in the product. He added that they have organizations, banks, Reg S issuers, on-off ramps, as well as solutions for liquid staking.

There are diverse use cases throughout diverse consumer types, according to him. Reg S denotes a Regulation S offering. This permits a firm to release debt or equity as well as to utilize an online technique to collect capital from investors living in the United States.

The platform has developed a permissioned DeFi offering. This allocates “Blue IDs” to its customers who are afterward verified by a group of eligible issuers.

Ava Labs CEO Says DeFi and TradFi Sectors Are Merging

The firm was the qualifier at a hackathon that was conducted in 2022’s March. After that, it has additionally taken part in other projects like DeFi Base Camp Accelerator of Outlier Venture and the Most Valuable Builder project of Binance.

Traditional finance is at present leaning toward the DeFi sector. Ava Labs’ CEO and co-founder Emin Gun Sirer discussed the role played by DeFi in the ecosystem existing in traditional finance.

The executive spoke on the things that the consumers can take place in this world in the coming time. Sirer emphasized that DeFi has no objective of attacking TradFi or becoming its enemy.

However, he added, it plays the role of a supplement at least at the start. He pointed out that decentralized finance could provide those services which are not offered by TradFi. He considers that the duo industries will go side by side.

In the words of the executive, these two financial sectors had dissimilar values at the start but are presently merging. Recently, a Ripple executive expressed that 2023 will witness additional TradFi adoption.

Sirer brought to the front that following the debacle of FTX, there is a requirement to remind everyone that this industry has considerable and can revolutionize the future of finance.