Lattice Exchange (LTX), a decentralized platform that aims to advance digital-asset trading, announced today that digital asset institutional funds such as GDA (Global Digital Assets), Hillrise Capital, and Moonrock Capital are leaning in to support Lattice Exchange’s growth. They join an already strong list of backers, including Alphabit Fund and FBG Capital. This is a positive signal for decentralized finance (DeFI) as credible institutional funds are bringing their breadth of expertise into the nascent space.
A year of COVID and multi-national government relief has witnessed the rapid maturation of DeFi as a concept and a technology. Traditional institutions have taken a back seat to the first wave of innovation in DeFi and now interest is beginning to bud. For institutional crypto asset traders, there have been many risks associated with the few ecosystems that support DeFi, including high transaction fees, network latency, and nominal retail digital asset holders. Since 2017, there has been an overwhelming amount of institutional interest in growing the digital asset ecosystem through improved technology with alternative base layer protocols, like Constellation Network, that offer enhanced speed, security, and scalability.
Karl Samsen, EVP of Capital Markets for GDA, said: “GDA is proud to announce our capital commitment to Lattice Exchange alongside FBG Capital, GSR, & Alphabit Fund. The foundation of our investment thesis as a firm rests on two large pillars, management & infrastructure. In Lattice, GDA has found comfort in a project that will solve a major scaling hurdle in the DeFI infrastructure that is led by a diligent management team that our firm can stand behind.”
Lattice Exchange will be built with Constellation, an alternative to Ethereum, as it aims to provide sophisticated trading tools that scale the DeFi industry and bring some of the value, tools, and solutions from traditional securities. Traditional securities hedge funds often use big data and advanced algorithms to provide a competitive advantage. Lattice Exchange, built on Constellation’s developer ecosystem that supports oracalized big data, will be the first of its kind to attempt to bridge the gap between digital and traditional.
Moonrock Capital’s Simon Dedic states: “We have had the pleasure to work closely with the Constellation team for quite some time and have been consistently impressed by their professionalism and the level of execution. We are already seeing them doing the same with the formation of Lattice as a separate organization. We believe Lattice is a great first application that demonstrates the potential of Constellation’s Hypergraph Network.”
Daniel Dal Bello, Director of Hillrise Capital: “We’ve been keeping a close eye on the development of the DeFi movement this year. While optimistic about the future, throughput and fees within the Ethereum ecosystem undoubtedly hinder growth. Lattice Exchange presents a genuine opportunity to take DeFi forward by enabling cross-chain capability, scalability, and negligible fees. We’re excited to be supporting the first major application leveraging Constellation’s Hypergraph architecture.”