The Huobi Group, the firm behind the world’s second-largest cryptocurrency exchange (as ranked by CoinMarketCap), has launched a new division focused on decentralized finance (DeFi) investment, incubation, and research.
DeFi refers to non-custodial crypto products, like synthetic stocks, lending protocols, decentralized exchanges and decentralized stablecoins.
Huobi DeFi Labs will begin with “tens of millions of dollars” in investment funds, according to a press release, and aims to help push forward the growing DeFi market.
The Singapore-based company has added Sharlyn Wu as its new Chief Investment Officer to lead the DeFi division. Wu most recently led blockchain investment as the Managing Director at China Merchant Bank International (CMBI), and prior to that spent a decade at UBS.
“Over the past two years, we have witnessed the birth and exponential growth of DeFi,” said Wu, in a release. “The width, depth, and speed of innovations are unparalleled in human history. It is exciting to see the power of permissionless economy unleashed at global scale. However, there are still many problems to be solved at theoretical and technical level.”
Wu further pointed to such benefits to DeFi as transparency and efficiency compared to the current finance system, along with the elimination of human influence (and error) on decisions. “Crypto is a perfect system for finance,” she suggested in the release.
“There is also a lot of investor education to do in order to bring crypto and DeFi to mainstream users,” she added. “As DeFi is still in its infancy, it needs