New Capital Targets Scalable Infrastructure for On-Chain Institutional Adoption
Crypto market maker and Web3 investment firm DWF Labs has launched a $75 million investment fund aimed at decentralized finance projects that can support the next wave of institutional participation. The initiative signals a growing shift toward on-chain liquidity, advanced trading architecture, and yield-focused products designed for larger market players.
Funding Push Toward Institutional-Grade DeFi
DWF Labs announced the fund on Wednesday, highlighting its focus on projects that offer “innovative value” and the ability to scale for broad adoption. The program specifically targets dark-pool perpetual DEXs, decentralized money markets, and fixed-income or yield-bearing asset products—sectors the firm views as central to the evolution of digital finance.
The firm states that these categories are positioned for major expansion as crypto market structure undergoes a continued migration toward on-chain liquidity execution.
Building DeFi Infrastructure With Real Utility
Managing partner Andrei Grachev emphasized that the DeFi landscape is shifting into a new era driven by genuine institutional requirements.
“DeFi is entering its institutional phase. We’re seeing real demand for infrastructure that can handle size, protect order flow, and generate sustainable yield,” he said.
DWF Labs will invest in projects across Ethereum, BNB Smart Chain, Solana, and Base, signaling a multi-chain approach to ecosystem development. The firm will also provide additional support beyond capital, including:
- TVL and liquidity provisioning
- Hands-on go-to-market strategy assistance
- Access to partner exchanges and market makers
- Connections to institutional participants and infrastructure providers
These components, the firm noted, are critical for helping emerging DeFi platforms scale to meet institutional standards.
Institutional Participation Rising
Current data shows over $120 billion in total value locked (TVL) across DeFi platforms, according to DefiLlama, reflecting a steady recovery from the market downturn. TVL nearly returned to its 2021 peak last month, reaching around $166 billion before the October decline.
Despite its roots as an alternative to traditional finance, experts believe the sector’s next growth stage will depend heavily on institutional engagement.
Chainlink co-founder Sergey Nazarov, speaking in a recent interview, noted:
“I think we’re about 30% of the way there.”
He added that 50% adoption hinges on regulatory clarity, while 70% adoption could follow once infrastructure becomes simple and reliable enough for institutions to deploy both capital and client funds.
As DWF Labs rolls out its new fund, industry analysts expect increased acceleration of platforms capable of delivering the scalability, privacy, and yield generation institutions require—marking a decisive step toward the next phase of decentralized finance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.