Unstoppable finance gets a windfall. The Berlin start-up wants to make DeFi suitable for the masses.
The DeFi-Space promises more independence of the individual from the traditional financial sector. Away from banks, brokers and custodians, towards the individual who takes control of their own financial transactions. However, it will be a while before the financial market 2.0 can fully become a reality. In order to achieve a breakthrough into the mainstream, technical hurdles in particular have to be cleared out of the way. A deeper understanding of the technical matter is currently required for many DeFi applications. A deficit that Unstoppable finance would like to fix with a user-friendly service in order to make decentralized finances attractive for the mass market.
The Berlin start-up around the three co-founders Peter Grosskopf (CTO), Maximilian von Wallenberg-Pachaly (CEO) and Omid Aladini (Director of Engineering) has now announced the successful conclusion of a financing round in a press release. This brings Unstoppable finance 4.5 million euros. The donors include Speedinvest, Inflection, Backed, Cadenza and further venture capital and angel investors from the Ethereum / Polkadot ecosystem, Centrifuge and Fractal.
Non-custodial wallets, the “super apps” of tomorrow
For the implementation of a user-friendly solution approach Unstoppable finance to a non-custodial wallet, ie a “purse” in which the private keys are with the users. Peter Grosskopf says:
We firmly believe that the super apps of tomorrow will be non-custodial DeFi wallets that have the potential to store the entire digital identity.
Unstoppable finance CTO Peter Grosskopf
It is still unclear whether this will be a web wallet similar to MyEtherWallet or a desktop version like BitGo. Likewise, the features in the press release are only touched on superficially. Users should be able to use the platform as a “one-stop shop” for trading, high-interest savings, NFTs and other Web3 services. In other words, an easy-to-use crypto all-in-one solution, such as the Neo-Broker Trade Republic for the conventional financial sector. In relation to BTC-ECHO, Grosskopf also emphasizes that great importance is attached to a multichain solution.
The trio of Unstoppable finance already has some experience in space. Previously, the Stuttgart Stock Exchange Digital Exchange successfully set up a crypto trading platform in Germany. Grosskopf was also CTO and co-founder of the Solarisbank involved. The recently announced a partnership with Coinbase. Since then, the Berlin-based company has taken on the KYC test for new customers of the crypto exchange.
“DeFi can create the best financial system ever”
For DeFi providers in Germany, there could still be competitive disadvantages, especially with regard to staking. As a reminder: in a new tax draft at the end of August, the Federal Ministry of Finance called for the holding period for staking to be increased to 10 years. Peter Grosskopf believes that this is too ambitious:
I am not enthusiastic about the increase in the holding period for staking and a few weeks ago I also expressed my criticism in public (or I am trying to get involved in suitable positions). The aim should be for us to establish a blockchain-friendly taxation practice in Germany. With such a young technology, 10 years seems very outrageous.
Unstoppable finance CTO Peter Grosskopf towards BTC-ECHO
Also the enactment of the KryptoWerteTransferVerordnung At the beginning of October he sees Unstoppable finance CTO critical. In it, the BMF demands strict KYC measures from service providers in order to curb money laundering and terrorist financing. However, DeFi has to be treated differently here in the regulatory framework because it works differently, says Grosskopf.
In my opinion, decentralized finance has the potential to create the best financial system of all time, because it is transparent (transactions on public blockchain) and traceable (smart contracts can be inspected) … We, the community, still have to do a lot of educational work to ensure that The technology’s potential is not nipped in the bud.
Unstoppable finance CTO Peter Grosskopf towards BTC-ECHO