When companies opt to interact with cryptocurrency, they soon realize the environment is divided among many blockchains. To transfer assets between distinct chains, they frequently need to employ a method known as bridging, which can turn out to be unreliable and costly. Philipp Zentner, the cofounder and chief executive of LI.FI, established his venture to tackle these challenges. This new enterprise offers companies analyses of exchange rates and fees associated with bridging. Furthermore, it endeavors to identify the most effective and economical route for each financial exchange.
TL;DR
- LI.FI offers crypto businesses analyses of exchange rates and fees for bridging assets between blockchains.
- The company secured $29 million in investment, bringing its total capital to approximately $52 million.
- LI.FI acts as a competitive price comparison and transaction pathfinding service for crypto finance.
- The firm handles $8 billion in monthly transaction volume and plans to expand into new transaction areas.
LI.FI revealed on Thursday that it secured $29 million in investment, with Multicoin and CoinFund spearheading the round, which elevates its total capital to approximately $52 million. Zentner withheld details regarding the firm's valuation.
“You can think of us like a combination of Google Flights and Google Maps,” he said in an interview with Coins2Day. “[We’re] a competitive price comparison and transaction pathfinding for businesses in crypto finance.”
LI.FI's collaborators consist of financial technology firms, investment platforms, trading operations, digital wallets, and challenger banks. This emerging company boasts over 800 associates, such as Robinhood, Binance, and Kraken. The firm asserts that its core offering enables businesses to accelerate their market entry and reduces their expenditure of time on investigation, setup, and upkeep.
Zentner states that LI.FI is a profitable venture, earning income from transaction charges, although he opted not to reveal precise financial figures. As of October, it handles $8 billion in transaction volume each month, representing a sevenfold increase compared to its monthly volume from the preceding year. The firm employs over 100 individuals.
“As crypto trading becomes a core feature inside mainstream fintech apps, the hardest problem is…making fragmented blockchains, liquidity, and execution work seamlessly together,” said Spencer Applebaum, investment partner at Multicoin Capital, in a statement. “LI.FI Protocol gives fintechs and web3 wallets a single API to offer both trading and cross-chain asset movement, handling on-chain routing and execution behind the scenes.”
LI.FI intends to broaden its reach into various transaction areas, such as perpetual futures, yield prospects, prediction markets, and lending markets, thanks to the recent investment. Zentner states that this fresh capital will also enable him to recruit additional staff.
