The decentralized finance (DeFi) landscape continues to evolve at a rapid pace, with institutional interest reaching new heights. At the center of this momentum is 1inch, a leading decentralized exchange (DEX) aggregator, which has successfully closed a massive $175 million Series B funding round—a significant leap forward in its mission to bridge traditional finance with DeFi.
Led by Amber Group, a prominent global cryptocurrency financial services firm, this round marks one of the most substantial investments in a DeFi infrastructure project to date. The funding attracted approximately 50 institutional investors, including notable names such as Jane Street, VanEck, Fenbushi Capital, Alameda Research, Celsius, Nexo, Tribe Capital, and Gemini Frontier Fund.
What Is 1inch and How Does It Work?
1inch operates as a decentralized exchange aggregator, designed to optimize token swaps across multiple liquidity sources. Rather than relying on a single liquidity pool, the platform scans various decentralized exchanges—including Uniswap, SushiSwap, and Curve—to find the most efficient trade routes with minimal slippage and lower fees.
This smart routing mechanism ensures users receive the best possible price for their trades while conserving gas costs—a critical advantage in the often-volatile Ethereum ecosystem. As DeFi continues to expand, tools like 1inch become increasingly vital for both retail and institutional participants navigating fragmented liquidity.
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Strategic Funding Surge: From $70M Target to $175M Close
Originally targeting $70 million in funding, 1inch saw overwhelming demand from institutional players, prompting the team to scale up the round to **$175 million**. This surge reflects growing confidence in DeFi’s long-term viability and underscores the importance of scalable, secure infrastructure.
Sergej Kunz, co-founder of 1inch Network, emphasized the shift in market dynamics:
“The next $1 trillion of assets entering DeFi will come from institutions rather than retail users, and 1inch would like to facilitate entry for them.”
To support this vision, 1inch has already begun integrating talent and expertise from traditional finance (TradFi), laying the groundwork for broader adoption across regulated markets.
Introducing 1inch Pro: A Gateway for Institutions
A major portion of the newly raised capital will go toward developing 1inch Pro, a dedicated platform tailored for institutional investors in the U.S. and Europe. Unlike the public-facing 1inch app, 1inch Pro will offer a permissioned environment that complies with enterprise-grade security standards and local regulatory frameworks.
Kunz explained:
“The mission is to provide access for institutions to a separate and permissioned 1inch Pro service that will deploy the compliance protocol designed to meet both enterprise-grade requirements for accessing DeFi and local laws and regulations where it operates.”
This move positions 1inch as a pioneer in creating compliant pathways for hedge funds, asset managers, and fintech firms to engage with decentralized protocols—without compromising on regulatory adherence or operational efficiency.
Expanding the Role of the 1INCH Token
Beyond infrastructure development, the funding will also accelerate innovation around the 1INCH governance token. In Q1 2022, 1inch launched a new protocol feature allowing users to stake 1INCH tokens as insurance coverage against potential protocol losses.
By participating in this staking mechanism, users take on risk exposure in exchange for earning a share of transaction fees—creating a decentralized insurance model that enhances protocol resilience. This utility strengthens the economic value of the 1INCH token beyond mere governance, aligning incentives across developers, traders, and long-term holders.
Transitioning Toward Full Decentralization with 1inch DAO
In line with core DeFi principles, 1inch is actively transitioning control of its ecosystem to the 1inch DAO (Decentralized Autonomous Organization). This initiative aims to fully decentralize both the network’s protocols and the native token, ensuring that decision-making power rests with the community.
As more participants join the DAO, governance becomes increasingly democratic—each vote carrying weight in shaping future upgrades, partnerships, and treasury allocations. The team believes this shift not only strengthens trust but also insulates the project from centralized points of failure.
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Scaling the Team and Building for the Future
With over 70 team members currently spread across the globe, 1inch plans to at least double its workforce over the next few years. The expansion will focus on engineering, compliance, product development, and global operations—particularly in regions with emerging regulatory clarity around digital assets.
This growth trajectory mirrors broader industry trends: as DeFi matures, projects must balance innovation with regulatory preparedness, user security, and institutional-grade reliability.
About Amber Group: Powering Institutional Crypto Adoption
Amber Group, the lead investor in this round, is a key enabler of institutional participation in digital assets. Founded in 2017, the firm provides around-the-clock crypto trading, lending, and asset management services across major financial hubs including Hong Kong, Taipei, Seoul, and Vancouver.
With over $4 billion in assets under management** and more than **$800 billion in cumulative trading volume across 100+ exchanges, Amber Group serves over 800 institutional clients worldwide. Its 2021 Series B raise of $100 million cemented its status as a fintech unicorn valued at over $1 billion.
Their investment in 1inch signals strong belief in DeFi’s potential to redefine global financial infrastructure—with efficiency, transparency, and accessibility at its core.
Frequently Asked Questions (FAQ)
Q: What is a DEX aggregator?
A: A DEX aggregator scans multiple decentralized exchanges to find the best possible trade prices by combining liquidity sources, reducing slippage and gas costs for users.
Q: Who led the $175 million funding round for 1inch?
A: The round was led by Amber Group, with participation from about 50 institutional investors including Jane Street, VanEck, and Gemini Frontier Fund.
Q: What is 1inch Pro?
A: 1inch Pro is a secure, compliant platform being developed for institutional investors in the U.S. and Europe, offering permissioned access to DeFi with adherence to local regulations.
Q: How will the funds be used?
A: The capital will be used to build 1inch Pro, expand protocol capabilities, enhance the utility of the 1INCH token (including staking for insurance), and grow the global team.
Q: Is 1inch becoming decentralized?
A: Yes—1inch is transitioning governance to 1inch DAO, allowing community members to vote on key decisions and ensuring full decentralization of protocols and token ownership.
Q: Can individuals stake 1INCH tokens?
A: Yes—users can stake 1INCH tokens to act as insurance providers for the protocol and earn rewards from transaction fees in return for taking on risk.
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