DeFi: M^ZERO platform raises $22.5 million

Pantera Capital has just conducted a tour de table for M^ZERO Labsa startup that designs a decentralized infrastructure which allows institutional liquidity providers to interact in a manner on-chain.

Wednesday, M^ZERO Labs has announced that it has collected 22.5 million dollars in a funding round led by crypto VC Pantera Capital.

In stealth mode for several months, the startup founded by TradFi alumni and ex-MakerDao executives has emerged from the shadows at its fundraising which also brings together other major investors including Road Capital, Standard Crypto or ParaFi Capital.

M^ZERO Labs develops the “ first decentralized money middleware “an infrastructure that connects the assets of the global financial system to decentralized applications by allowing large institutional players to interact in a on-chain.

What Visa, Mastercard and American Express have done for payments, M^ZERO wants to do for value distribution. It will be an open-source, neutral protocol where liquidity providers and collateral can meet freely in a decentralized market on blockchain rails,” explained Paul Veradittakit, managing partner at Pantera Capital.

According to Pantera, protocols are now struggling to attract large institutional players due to concerns about security, compliance, and regulatory uncertainty. ” M^ZERO aims to solve this problem by creating a hub-and-spoke model, where their platform would be the neutral engine facilitating the distribution of value and liquidity, while regulated bridges would connect to it in accordance with their own rules,” reads an article published by the venture capital firm.

The solution will be hosted in a censorship-resistant environment that will be overseen and managed by decentralized governance. The first use case of the protocol will be the issuance of the project’s native token, a permissionless stablecoin “backed by distributed short-term US government debt.”

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