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Distributed Finance emerged from the shadows this morning by announcing a $2.5 million opening round and the acquisition of Algorand NFT Rand Gallery.
According to a report published on Tuesday, the new venture aims to promote the growth of non-fungible tokens (NFTs) and decentralized autonomous organizations (DAOs) in the Algorand ecosystem.
$2.5 million seeding round
The leader of the distributed finance round is Borderless Capital, an investment firm that launched a $500 million fund focused on the Tier 1 ecosystem in November.
Other investors in the round include The Algorand Foundation, Eterna Capital, Big Brain Holdings and Fun Fair Ventures, according to the report.
The founding team of Zest, the DAO management tool at Algorand, is responsible for creating distributed finance. Distributed Finance will now become Zest’s holding company, said Ross Murray-Jones, CEO of Zest.
In recent months, Zest has been working on the dao’s commercial structure in the Cayman Islands. Institutional clients will have access to the Investment DAO LLC structure, which will allow an unlimited number of participants from around the world to gain access to equity participation in their DAO, according to the report.
Zest’s clients include Borderless Capital and Al Goanna. The new $2.5 million will be used to launch and scale Zest; Murray-Jones said he was expanding the Rand Gallery and encouraging hiring.
Acquisition of Rand Gallery
He added that part of the initial financing also went to the acquisition of Rand Galley, but the details of the deal were not disclosed.
Murray-Jones said Distributed Finance has been working on the deal for six weeks now. This will allow the team to double their bet on Algorand, which is a proof-of-stake blockchain.
“NFT and DAO overlap, which means Zest and Rand Gallery have a lot in common,” Murray-Jones said. “Zest will use NFT to access its DAOs, and Rand Gallery will introduce DAO products to its market. For example, we recognize that a tool like PartyBid is operationally effective, but will work much better when integrated directly into the marketplace.”
According to a report by The Block Research, mergers and acquisitions are proceeding at a record pace for the year.
However, in recent weeks, several high-profile mergers and acquisitions have fallen apart, such as the acquisition by investment firm Galaxy Digital of cryptocurrency custodian BitGo and the merger of Prime Blockchain miner with SPAC 10X Capital Venture Acquisition Corp II.
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