Helix to expand crypto lending platform with $2m raise

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Blockchain-based lending has long been a major cog in the Web3 machine. The segment accounted for half of the total value locked, or the amount of assets currently staked, on the Ethereum blockchain as of March last year.

However, as the bear crypto market continues to bring down lender interest, lending platforms continue to struggle for growth. A trend among firms looking to turn this slump around is linking to real-world assets (RWAs), which can curb crypto’s volatility.

In Southeast Asia, one company looking to do this is Helix, a Web3 startup incubated by Singapore’s Helicap. It aims to create a platform that gives lenders access to stable yields tied to RWAs through smart contracts and tokenized collateral.

The company has raised US$2 million in a pre-seed round from strategic investors, including Saison Capital and Superscrypt.

Funding details

• Funding amount: $2,000,000
• Lead investors: Saison Capital, Superscrypt
• Other investors: Emurgo Ventures, Comma3 Ventures, Outlier Ventures, Emoote
• Stage: Bridge
• Source

According to Helix, RWA credit is a high-potential market that offers more stable yields. However, it acknowledged that the industry still faces issues such as low-quality credit risk assessment, insufficient origination pipelines, and liquidity constraints.

The company said that it overcomes these hurdles with its proprietary credit assessment tools. It also boasts the backing of Helicap, which specializes in Southeast Asia’s private credit market.

Helix plans to launch on Ethereum in Q4 this year and target accredited and institutional investors. It also wants to work with stablecoin providers, exchanges, and other lending protocols to grow the RWA credit ecosystem.

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