The decentralized finance (DeFi) landscape is undergoing rapid transformation, and at the center of this evolution stands the 1inch Network, which has recently closed a landmark $175 million Series B funding round. This significant milestone marks one of the largest investments in the DeFi aggregator space and underscores growing institutional confidence in decentralized financial infrastructure.
Backed by a consortium of over 50 prominent institutional investors, the funding round was led by Amber Group, a global digital asset firm known for its deep expertise in blockchain innovation and market-making. The capital injection will be strategically deployed to expand 1inch’s technological capabilities, enhance token utility, scale its development team, and bridge the gap between traditional finance (TradFi) and DeFi ecosystems.
Strategic Goals Behind the Funding
The newly acquired funds will primarily support four core initiatives:
- Facilitating institutional entry into DeFi through compliant solutions
- Developing next-generation protocols to improve cross-chain liquidity aggregation
- Expanding the use cases and utilities of the 1INCH token
- Scaling the global contributor team to accelerate product innovation
As DeFi continues to mature, the need for seamless, secure, and regulation-aware platforms becomes increasingly critical—especially for institutions navigating complex compliance landscapes. 1inch aims to become the preferred gateway for these entities seeking reliable access to decentralized markets.
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Institutional Adoption: The Next Frontier for DeFi
Sergej Kunz, co-founder of the 1inch Network, emphasized the project’s dual focus: serving existing DeFi users while actively paving the way for institutional participation.
“While continuing to keep the existing DeFi audience happy by delivering state-of-the-art products, 1inch also aims to become a gateway for institutions that want to be part of the DeFi space.”
Kunz believes that the next wave of growth—potentially involving $1 trillion in new assets—will originate not from retail investors, but from institutional players. To capture this opportunity, 1inch has already begun integrating key talent and partners from traditional finance, setting the stage for deeper collaboration in the coming years.
This strategic pivot aligns with broader industry trends. As regulatory frameworks evolve in regions like the U.S. and Europe, compliant DeFi products are becoming essential. One such solution under development is 1inch Pro, a tailored offering designed to meet institutional standards for security, auditability, and regulatory compliance.
A Decentralized Future Powered by Community Governance
One of the most impactful outcomes of this funding round is the expected acceleration in decentralization. With dozens of new stakeholders joining the ecosystem, governance within the 1inch DAO (Decentralized Autonomous Organization) will become more distributed and democratic.
Each new investor and participant strengthens the network’s resilience and reduces central points of control. This expansion ensures that decision-making power remains broadly shared, reinforcing trust and long-term sustainability.
“A key part of the next phase of DeFi will be providing investors with seamless access to liquidity across different protocols and chains,” said Tiantian Kullander, co-founder and managing partner at Amber Group. “1inch has one of the best teams at the forefront of building bridges between fragmented liquidity pools, providing cost-savings and optimizing price discovery for all participants.”
Kullander further praised 1inch’s rapid pace of innovation, highlighting its potential to become the go-to hub for the DeFi ecosystem.
Building the Infrastructure for Cross-Chain Liquidity
At its core, 1inch operates as a decentralized exchange (DEX) aggregator, sourcing liquidity from multiple platforms to offer users optimal swap rates with minimal slippage. But its ambitions extend far beyond simple token swaps.
By leveraging advanced routing algorithms and smart contract automation, 1inch reduces transaction costs and improves execution efficiency across Ethereum, BNB Chain, Polygon, Arbitrum, Optimism, and other major blockchains.
Future protocol developments will focus on enhancing cross-chain interoperability, improving gas efficiency, and introducing privacy-preserving features—all aimed at making DeFi more accessible and performant for both retail and institutional users.
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Growing the Team to Fuel Innovation
To support these ambitious goals, 1inch plans to more than double its contributor base over the next few years. The expansion will focus on hiring top-tier engineers, researchers, compliance experts, and product designers with experience in both blockchain and traditional financial systems.
This talent infusion will enable faster iteration on core products, improved user experience design, and stronger engagement with regulators and enterprise clients.
Past Success Paves the Way
This latest round follows previous successful fundraising efforts:
- In December 2020, 1inch raised $12 million from major investors including Pantera Capital, ParaFi Capital, and Nima Capital.
- In August 2020, an earlier round brought in $2.8 million, led by Binance Labs.
These milestones demonstrate consistent investor confidence and validate 1inch’s long-term vision for a decentralized financial future.
Frequently Asked Questions (FAQ)
What is the purpose of the $175 million raised by 1inch?
The funds will be used to develop new DeFi protocols, enhance cross-chain liquidity solutions, expand the utility of the 1INCH token, grow the development team, and support regulatory compliance efforts—particularly for institutional adoption through products like 1inch Pro.
Who led the Series B funding round?
The round was led by Amber Group, with participation from over 50 institutional investors including Jane Street, VanEck, Fenbushi Capital, Alameda Research, Celsius, Nexo, Tribe Capital, and Gemini Frontier Fund.
How will this funding impact the 1INCH token?
While specific details may evolve, increased investment typically leads to expanded token utilities—such as staking rewards, governance rights, fee discounts, or access to premium services—thereby increasing demand and long-term value.
Is 1inch focusing only on institutional users now?
No. While institutional onboarding is a strategic priority, 1inch remains committed to serving retail DeFi users with high-performance tools, low fees, and continuous product improvements.
What is 1inch Pro?
1inch Pro is a compliant product currently in development aimed at institutional clients. It will provide enhanced security features, audit trails, regulatory alignment, and dedicated support—making it easier for traditional financial firms to engage with DeFi safely.
How does this funding affect decentralization?
By welcoming dozens of new participants into the ecosystem, governance within the 1inch DAO becomes more distributed. This strengthens decentralization by ensuring no single entity holds disproportionate influence over protocol decisions.
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Looking Ahead: The Road to Mass Adoption
As DeFi matures, platforms like 1inch play a crucial role in solving fragmentation, inefficiency, and accessibility challenges. With strong backing from industry leaders and a clear roadmap for growth, 1inch is positioning itself not just as a tool—but as a foundational layer of the future financial system.
Whether you're a retail trader seeking better swap rates or an institution exploring regulated DeFi entry points, 1inch offers scalable, secure, and innovative solutions built for tomorrow’s economy.
More updates are expected as development progresses across protocols, tokenomics, and global outreach. The journey toward open, inclusive finance continues—one innovation at a time.