Velvet Capital Secures $3.7M in New Funding Round
- Velvet Capital secures new funding for DeFi expansion.
- YZi Labs involved in the $3.7M round.
- Focus on asset management with cross-chain potential.

Velvet Capital raised $3.7 million in a recent funding round with participation from YZi Labs, formerly known as Binance Labs, to enhance its DeFi asset management capabilities.
This investment by prominent venture supporters underscores Velvet Capital’s mission to innovate in DeFi asset management through a focus on trustless and transparent ecosystems.
Funding and Future Plans
Velvet Capital, a DeFi asset management protocol, announced a successful $3.7 million funding round. Significant entities like DWF Ventures and YZi Labs backed the initiative. Founded in 2022, Velvet specializes in tokenized index funds and portfolios.
The funding will bolster the rollout of Velvet’s new DeFAI operating system. Investors anticipate enhanced trading and portfolio management, especially across cross-chain avenues, expanding from its stronghold on the Ethereum network.
The infusion of funds aims to strengthen market positioning, enabling ecosystem utility and the launch of the VELVET token. This involves vote-escrowed staking for governance and reduced trading fees, capitalizing on potential increased user engagement.
Market Positioning
Such fundraises often result in increases in Total Value Locked (TVL) and platform activity, similar to past successful launches like Enzyme Finance and dHEDGE. Velvet’s approach includes adopting a governance token model, expected to draw substantial market interest.
Michael O’Connor of FunFair Ventures praised Velvet’s approach, aligning with sustainable financial structures. Future developments hinge on the deployment of yield-focused strategies and potential integration of other chains like BTC and major Layer 1 tokens.
“FunFair shares Velvet Capital’s belief that the future of asset management will be trustless, transparent, and on-chain. By coupling robust security with an intuitive UX, Velvet is laying the foundations for a more open financial ecosystem.” – Michael O’Connor, Partner, FunFair Ventures
Looking Ahead
The focus remains on monitoring Velvet’s token launch and evaluating market metrics following the funding announcement. Outcomes in the DeFi space will serve as indicators of Velvet’s growth trajectory in asset management.