Former Goldman Sachs Traders Raise $20M to Build a DeFi Investment Bank

A group of former Goldman Sachs traders has raised $20 million in Series A funding to build a decentralised investment bank called Ondo Finance.

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The round was led by Founders Fund and Pantera Capital, with participation from Coinbase Ventures, GoldenTree, Wintermute, Steel Perlot, Tiger Global, and Flow Traders.

Ondo is building a decentralised investment bank focused on connecting stakeholders in the emerging DeFi ecosystem, including decentralised autonomous organisations (DAOs), institutions, and retail investors.

The firm's first offering was a novel primitive for decentralised structured products that offer choice between downside protection and enhanced returns.

The company quickly expanded to other use cases, such as its Liquidity-as-a-Service offering, which matches DAOs with underwriters to provide liquidity for a DAO's native token. Ondo has partnered with more than ten DAOs and has seen more than $200 million in liquidity deposited into its protocol.

The startup now plans to launch a host of new products, including vaults that bundle yields from algorithmic stablecoins as well as vaults that aggregate yield across different blockchains.

Nathan Allman, CEO, Ondo Finance, said: "We're excited for some new product launches that will make it much easier for passive investors to obtain broad exposure to DeFi yields at a customized risk level."

Source: Finextra