Singapore’s Spartan Group backs Pendle Finance in undisclosed investment
Singapore-based digital asset investment firm Spartan Group has announced an investment in the decentralized finance (DeFi) protocol Pendle Finance, although the size remains undisclosed. After providing active support for Pendle since its 2021 launch, Spartan Group’s crypto venture capital (VC) arm, Spartan Capital, made a follow-on investment in Pendle Finance through an over-the-counter (OTC) purchase.
The firm highlighted the strong partnership between Spartan and Pendle since the DeFi project’s inception, emphasizing that this latest investment aims to support the project in its continued growth.
Quoting Pendle’s Twitter announcement, Spartan was acknowledged as a long-time supporter of the project, with Pendle expressing their honor in linking hands with Spartan once more. This collaboration is viewed as part of their commitment to reshaping the crypto landscape together.
“At Spartan Capital, we recognize the transformative potential of Pendle and their pivotal role in driving the advancement of on-chain yield trading,” said Spartan in a statement.
Spartan also noted that Pendle has been steadily emerging as a major DeFi protocol, with total value locked (TVL) surging by more than 2,000% in a year from November 2022, according to data from DefilLama. The VC firm expressed confidence that Pendle’s solutions, like Liquid Staking Derivatives and its yielding project, Real World Assets, will help bring more off-chain capital to the industry.
“The convergence of Liquid Staking Derivatives and Real World Assets presents an exceptional growth opportunity for the DeFi sector,” said Spartan Capital managing partner Kelvin Koh. “Their yield trading toolkit is designed to complement and bring value to any digital, yield-bearing assets, which also means that Pendle will be in a unique position as an accelerant for more future DeFi developments.”
Spartan’s optimism about DeFi comes amid the industry’s failure to gain much momentum in 2023. Despite total DeFi TVL edging up only about 18% since the beginning of the year, the industry has not managed to reach early 2022 levels and is down 279% from the all-time highs above $177 billion recorded in November 2021.
In contrast to DeFi, some other markets, such as Bitcoin (BTC), have been surging this year. The world’s largest cryptocurrency has added more than 120% since January after starting the year at around $16,600, according to data from CoinGecko.
Despite the DeFi-related economic activity dropping significantly in 2023, the sector has seen significant funding. Venture capital group Blockchain Capital announced two new funds totaling $580 million earlier this year, targeting the DeFi development alongside gaming and infrastructure investment.
Spartan Capital did not immediately respond to requests for comment.
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