Why We Invested in PureFi
Earlier this week, we secured a strategic investment into PureFi — an on-chain oracle protocol and compliance gateway designed to make interacting with DeFi a safer, more attractive proposition for institutions.
As decentralized finance continues to see not only increased adoption among traditional players but also increased regulatory scrutiny, the need to properly enforce AML and KYC practices for participants continues to grow.
Until the advent of PureFi, institutional users had little to no way of adequately isolating the regulatory risks that can come with using DeFi applications — such as the risk of inadvertently handling illicit funds and interacting with fraudulent counterparties.
PureFi overcomes this challenge through a novel protocol that analyzes cryptocurrency wallets and transactions using AML databases and provides the results in the form of certificates. According to PureFi, these certificates contain a variety of data about the transactions, such as the associated AML/KYC data, asset price, and other metadata — allowing the certificate to be used as a AML/KYC document for any DeFi interaction.
With its solution, PureFi hopes to tackle the “Wild West”-like state of DeFi as it stands, allowing traditional players to enter the space while remaining compliant and protecting their anonymity.
PureFi’s solution is available across a variety of the most popular DeFi-capable chains, including Ethereum, Binance Smart Chain (BSC), Polkadot, and Solana. This, PureFi believes, will ensure users will be able to access the full breadth of the DeFi landscape while remaining protected by its compliance gateway.
At Master Ventures, we believe that DeFi has the potential to disrupt the way we think about money and the way it is used. We also believe that given enough time, innovation, and adoption, DeFi tools, protocols, and products will essentially eat traditional finance (TradFi) from the inside out — by solving the inherent challenges that have almost crippled TradFi.
PureFi represents a crucial step in the right direction, by enabling institutions to confidently take positions in crypto and make use of DeFi, which could help the industry become better regulated and reach the next level of growth.
PureFi is the only DeFi AML protocol for cryptocurrency onboarding. It aims to provide a full-cycle solution for crypto asset analytics and AML/KYC procedures on the DeFi market. Through a set of smart contracts, PureFi will connect KYC/AML providers with DeFi users and DEXs/Defi projects to provide crypto asset analytics and protect honest DeFi market players from “dirty money” risks.
About Master Ventures
Master Ventures is a blockchain-focused venture studio helping to build the next generation of blockchain-based Web 3.0 system innovations within the crypto industry. Launched in 2018 by Founder and CEO Kyle Chassé, the company’s ethos can best be summarized in the acronym #BeBOLD: Benevolent, Open, Love, Decentralized.
Master Ventures co-creates with entrepreneurs and businesses worldwide to turn the best ideas into innovative and disruptive products. They do this by investing as strategic partners through offering advisory services to the projects they believe in. To date, Master Ventures has invested in over 40 crypto projects, including the likes of Kraken, Coinbase, Bitfinex, Reef, DAO Maker, Mantra DAO, Thorchain, and Elrond.
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