The decentralized finance (DeFi) ecosystem is witnessing a pivotal moment as 1inch Network, one of the leading decentralized exchange (DEX) aggregators, announces a landmark **$175 million Series B funding round**. Originally aiming for $70 million, the overwhelming demand from institutional investors pushed the final figure well beyond expectations—signaling growing confidence in DeFi’s long-term viability and scalability.
This major capital injection not only validates 1inch’s technological edge but also underscores a broader trend: traditional financial institutions are increasingly viewing DeFi as a legitimate and high-potential sector. With this new funding, 1inch is setting its sights on aggressive expansion, regulatory compliance, and building bridges between legacy finance and blockchain-native ecosystems.
Strategic Backing from Top-Tier Financial Players
The funding round was led by Amber Group, a globally recognized digital asset platform known for its infrastructure and market-making services. But what makes this round truly significant is the depth and diversity of participation.
Over 50 institutional investors joined the round, including:
- VanEck – A major asset manager with a strong presence in crypto ETFs
- Alameda Research – A key player in early crypto liquidity provision
- Celsius Network – A now-restructured but previously influential DeFi lending platform
- Gemini Frontier Fund – The investment arm of Gemini Exchange, founded by the Winklevoss twins
Notably, Gemini Frontier Fund acquired 1INCH tokens at $1.50 each** during this round. With the token trading at approximately **$3.44 at the time of writing (via CoinMarketCap), this early positioning reflects strong conviction in 1inch’s roadmap and future value accrual.
👉 Discover how institutional capital is reshaping the future of decentralized finance.
Funding Allocation: Building the Next Generation of DeFi Infrastructure
So, where will this $175 million go? 1inch has outlined a clear, multi-pronged strategy to scale its operations, enhance security, and lead the charge in institutional DeFi adoption.
Scaling Development and Talent Acquisition
A significant portion of the funds will be used to expand the core development team. As DeFi protocols grow more complex, attracting top-tier blockchain engineers, smart contract auditors, and product designers becomes critical. 1inch plans to establish new engineering hubs and accelerate product iteration cycles.
Innovation Through New Protocol Development
Innovation remains central to 1inch’s mission. The capital will support the creation of next-generation DeFi protocols, including advanced routing algorithms, cross-chain liquidity solutions, and privacy-preserving transaction layers. These upgrades aim to improve slippage reduction, gas efficiency, and overall user experience across multiple blockchains.
Expanding 1INCH Token Utility
The 1INCH token is more than just a governance instrument—it’s becoming a cornerstone of the ecosystem. Future plans include:
- Staking rewards with enhanced yield mechanisms
- Fee discounts and priority access to premium features
- Integration with new dApps within the 1inch ecosystem
- Potential use in decentralized identity (DID) and reputation systems
By increasing utility, 1inch aims to drive organic demand for its native token beyond speculative trading.
Navigating Regulatory Compliance in Key Markets
One of the biggest hurdles for DeFi’s mass adoption is regulatory clarity—especially in the U.S. and Europe. 1inch is proactively allocating resources to:
- Engage with legal experts and compliance consultants
- Implement know-your-customer (KYC) optional tiers for institutional products
- Develop audit-ready smart contracts that meet financial reporting standards
This forward-looking approach positions 1inch as a leader in compliant DeFi innovation.
Launching 1inch Pro: A Gateway for Institutions
Perhaps the most ambitious initiative is the development of 1inch Pro, a dedicated platform tailored for institutional clients. Designed with enterprise-grade security and reporting tools, 1inch Pro will offer:
- Customizable API integrations
- High-volume trade execution with minimal slippage
- Portfolio analytics dashboards
- Regulatory-compliant onboarding workflows
This product directly addresses the pain points institutions face when entering DeFi—lack of support, transparency, and compliance frameworks.
FAQ: Your Questions About 1inch’s Funding and Future
Q: Why did 1inch raise $175 million when they only wanted $70 million?
A: The initial target was exceeded due to overwhelming interest from institutional investors who see long-term value in DeFi infrastructure. This oversubscription reflects strong market confidence in 1inch’s technology and vision.
Q: What is 1inch Pro, and how is it different from the main platform?
A: 1inch Pro is a specialized version of the platform built for institutional users. It includes enhanced security, compliance tools, APIs, and analytics not available on the retail-focused interface.
Q: Is the 1INCH token central to the network’s growth strategy?
A: Yes. Beyond governance, the token plays a growing role in staking, fee discounts, and ecosystem incentives. Increased utility helps align long-term stakeholders with network success.
Q: How does this funding impact decentralization?
A: Despite growing institutional involvement, 1inch remains committed to decentralization. Part of the funds will support DAO governance improvements, ensuring community members retain influence over key decisions.
Q: Can retail users still benefit from 1inch’s expansion?
A: Absolutely. While 1inch Pro targets institutions, the core aggregator continues to serve retail traders with better rates, lower fees, and improved UX—all enhanced by the same underlying upgrades.
👉 See how next-gen DeFi platforms are merging accessibility with institutional-grade performance.
Becoming the Institutional Gateway to DeFi
Sergej Kunz, co-founder of 1inch Network, has made the project’s ambition clear:
“1inch also aims to become a gateway for institutions that want to be part of the DeFi space.”
He goes further, predicting a seismic shift in asset flows:
“The next US$1 trillion of assets entering DeFi will come from institutions rather than retail users, and 1inch would like to facilitate entry for them. We have already started work in that direction… by attracting some key players from the traditional finance markets, and this collaboration will only accelerate over the next few years.”
This vision marks a turning point—not just for 1inch, but for DeFi as a whole. The era of DeFi being seen as a niche playground for crypto enthusiasts is ending. With robust infrastructure, compliant products, and institutional backing, platforms like 1inch are paving the way for trillion-dollar capital inflows.
Strengthening Decentralization Through DAO Empowerment
Even as 1inch courts Wall Street, it remains rooted in Web3 principles. A dedicated allocation from the funding will empower the 1inch Decentralized Autonomous Organization (DAO) by:
- Improving proposal submission and voting mechanisms
- Introducing quadratic voting to reduce whale dominance
- Funding community-led grants and developer bounties
These efforts ensure that decentralization isn’t sacrificed for growth—a balance many projects struggle to maintain.
👉 Learn how decentralized governance models are evolving to support scalable innovation.
Final Thoughts: A New Chapter for DeFi
The $175 million raise is more than just a financial milestone—it's a statement. 1inch Network is positioning itself at the forefront of DeFi’s institutional evolution, combining cutting-edge technology with regulatory foresight and community-driven governance.
As more traditional finance players seek exposure to decentralized markets, platforms that offer security, compliance, and seamless integration will lead the charge. With its clear roadmap, strong investor backing, and unwavering commitment to decentralization, 1inch is uniquely equipped to become the bridge between old money and new finance.
Core Keywords: DeFi, 1inch Network, decentralized exchange, institutional adoption, 1INCH token, DAO, DeFi expansion, crypto funding