Coinchange's API Yield Service Soars with $10M Funding Boost for Digital Asset Expansion

Coinchange, a digital asset platform based in Toronto, is celebrating a significant milestone after securing a substantial $10 million in funding through its Series B round. The funding endeavor was led by a consortium of distinguished investors, featuring G1.VC, Spirit Blockchain, Good News Ventures, K2.CA, and Atoia Ventures. Mintfox also enthusiastically participated in this noteworthy investment initiative.

The primary objective steering this financial infusion is to propel the expansion of Coinchange's innovative API-based yield service. This service is finely tuned to accommodate renowned cryptocurrencies, including bitcoin (BTC), ether (ETH), and major stablecoins.

Coinchange positions itself as a dedicated player in the field, directing its efforts toward servicing other businesses, particularly cryptocurrency exchanges. The platform aims to empower these enterprises by providing comprehensive solutions that encompass both trading and yield options for their clients. The avant-garde yield-farming strategies offered within the decentralized finance (DeFi) markets are seamlessly facilitated through Coinchange's Earn API service, which serves as a dynamic bridge via an application programming interface (API). This sophisticated interface enables a fluid exchange of queries and information retrieval between computer systems.

A defining characteristic of Coinchange's operational framework is the meticulous on-chain management of assets. This strategic choice circumvents the necessity for centralized counterparts in custody or lending processes, thereby substantially mitigating counterparty risks for its diverse clientele. This approach takes on heightened significance in the aftermath of notable industry events, such as the collapse of FTX in the preceding November.

The reverberations of FTX's downfall rippled across various centralized platforms associated with the now-bankrupt exchange. A stark example is the challenging situation faced by 232,000 users of Gemini crypto exchange's Earn service. They experienced the freezing of over $1 billion by Genesis, Gemini's lending partner in the program. The subsequent bankruptcy filing by Genesis in January 2023, owed a substantial sum exceeding $226 million by FTX, underscored the vulnerabilities present in the industry.

Coinchange, with its emphasis on on-chain asset management and decentralized financial strategies, emerges as a resilient and trustworthy solution in an industry increasingly attuned to counterparty risks and the stability of financial services. As the digital landscape evolves, Coinchange positions itself as a beacon of reliability and innovation, navigating the complex terrain with a commitment to safeguarding the interests of its users.

Read More: Legal Battle Unfolds: Genesis Initiates Lawsuit Against Gemini for $689M