We are excited to share that we are backing Multis in a $2.2m seed round together with YCombinator, Coinbase, Digital Currency Group, White Star Capital and eFounders.
Multis is building a crypto-first business banking platform featuring a powerful interface to manage crypto assets (e.g. for payroll, expenses, etc.) and access decentralized finance (DeFi) protocols, while providing a bridge to the legacy financial system through integrated USD and EUR accounts.
Why is access to DeFi interesting?
Decentralized finance protocols allow for unprecedented innovation in the manufacturing of financial services, decreasing costs (through automation), increased transparency as well as full control over one’s own assets (through self-custody).
Banking infrastructure has largely remained unchanged since the 1970s — while fintech companies have strongly innovated the front-end and customer-relationship layer of banking, they have still remained and been built on the same legacy financial stack though. DeFi protocols are innovating deep down to the bottom of the stack creating a new internet-native financial system built on decentralized blockchains with 24/7 global and borderless liquidity. The software that used to surround financial products is now baked into the product itself. Open standards allow for building and stacking financial services with internet native efficiency and experimentation. Technically anybody can start manufacturing financial products the same way anybody could launch a blog and create content with early web services. Stateful protocols allow for new non-custodial products to be built, reducing barriers to entry for novel financial products, as the user is always in control and thus the responsibility of service providers is considerably reduced. Therefore we expect to see an increasing amount of liquidity pools and other financial protocols, which will quickly become overwhelming for users (both B2B and B2C) and lead to a strong need for aggregating services on top.
Closely connected, permissionless access and innovation in the manufacturing of financial services allows users to easily switch providers while entrepreneurs can build compatible services with ease. This should result in decreasing costs blended with an increase in service quality (through competition & automation).