The ADA Yield Fund starts at $100 million and will benefit from Cardano’s growing decentralized financial (DeFi) ecosystem through liquidity and other resources.
Wave Financial has announced the launch of Wave ADA Yield Fund, a $100 million fund focused on supporting the Cardano (ADA) blockchain ecosystem.
According to David Siemer, CEO of Wave Financial, the fund is purely for providing liquidity and targets decentralized exchanges (DEXs), lending protocols and stablecoin issuers. The fund will also support stake pools in the Cardano DeFi ecosystem.
“Each of these decentralized applications contributes to the strong foundation of the Cardano blockchain as it realizes a fully functional and diverse ecosystem,” Siemer said in a press release shared with CoinJournal on Wednesday.
Wave is a Los Angeles-based digital asset manager regulated by the U.S. Securities and Exchanges Commission (SEC). The company says the fund is a reflection of its goals in the crypto ecosystem, including support for promising entrepreneurs.
Cardano’s growing ecosystem attracts institutional investors
Cardano launched the smart contracts capability in 2021 and has seen an explosion in developer activity in recent months. According to Charles Hoskinson, the founder of Input Output (IOHK), hundreds have been started through community funding initiatives.
But more are in various stages of development, and the ADA fund will likely prove to be a timely launch. Hoskinson agrees with the sentiment, noting in a statement that the Cardano ecosystem will succeed if projects built on the blockchain thrive.
“So we are pleased that the ADA Yield Fund is committing significant financial resources to enable continued growth and market adoption,” he added.
Cardano continues to see strong interest from institutional investors, with demand fueling the high transaction volumes in the chain. Facts shows that year so far, trades with $100k or more in ADA have risen nearly 50x.
Demand has also prompted the launch of ADA-backed exchange-traded products to cater to institutional investors. This week, WisdomTree launched a Cardano ETP for the European market.