Ethereum-focused blockchain mission Kinto introduced that it has raised $5 million in fundraising rounds this yr to develop a totally compliant layer 2 community with anti-money laundering legal guidelines, aiming to attach real-world monetary establishments and belongings connecting to decentralized finance (DeFi) rails.
The mission was constructed utilizing the OP Stack, a set of software program instruments created by developer OP Labs that firms can use to simply arrange their very own customized Layer-2 networks. The know-how is derived from Optimism, the the second largest layer 2 network on prime of Ethereum. Coinbase, the foremost US crypto trade, relied on OP Stack to construct its personal layer 2 blockchain, Base.
In accordance with a press launch on Tuesday, Kinto secured $1.5 million in pre-seed funding from Kyber Capital Crypto earlier this yr. It just lately obtained one other $3.5 million in a spherical led by Kyber Capital Crypto, Spartan Group and Parafi. SkyBridge Capital, Kraynos, Gentle Holdings, Deep Ventures, Modular, Tane and Robotic Ventures additionally participated within the spherical.
The Kinto community has native know-your-customer (KYC) controls – a type of cash laundering prevention – and an investor accreditation mechanism to assist regulated monetary establishments get on board – making it an enormous deal for them solved in the event that they wish to entry blockchain-based protocols, Kinto co-founder Alan Keegan mentioned in an interview with CoinDesk.
In accordance with the press launch, Kinto would be the “first KYC layer 2 (L2) blockchain that may assist each fashionable monetary establishments and decentralized protocols.”
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Solely KYC entities can transact on the community, so on this method Kinto can eradicate nameless exploits and scams spreading on DeFi platforms, Keegan added. The community additionally provides incentives for insurance coverage firms and builders to construct purposes primarily based on transaction charges.
“We imagine {that a} full KYC layer 2 on prime of Ethereum is inevitable, and we strongly imagine that Kinto is the appropriate staff to execute on this imaginative and prescient,” mentioned Alex Klokus, co-founder and managing accomplice at Kyber Capital Crypto. , mentioned an announcement.
Kinto plans to open the onboarding and KYC course of later this month.