Alpha Finance Labs, a Decentralized Finance ecosystem, will collaborate with SCB 10X to create DeFi products that drive mainstream adoption. Their collaboration is intended to bridge the gap between the DeFi sector and the traditional financial world.
The Significance of SCB 10X
SCB 10X is the venture arm of Siam Commercial Bank, one of the largest commercial banks in Thailand. SBC 10X currently has investments in 13 different countries, and oversees startups that are working on disruptive technologies. By working with Alpha Finance Lab, they will bring experience from traditional banking into the DeFi sector.
SCB 10X has experience working in the crypto and blockchain domain. The company was amongst the initial investors in Ripple, an international payments giant valued at around $10 billion. They were also an early investor in BlockFi, a leading crypto lending platform.
An Overview of Alpha Finance
The Alpha Finance Lab ecosystem is designed to support various cross-chain DeFi products. They focus on the creation of automated yield-maximizing and interoperable products. Leading investors in the DeFi sector such as DeFiance Capital, Multicoin Capital, and The Spartan Group support Alpha Finance.
At the helm of Alpha Finance is Tascha Punyaneramitdee, who is the head of the company. He has a background in investment banking in London and San Francisco. Punyaneramitdee also worked as part of the product management team at Tencent, Thailand. The other leader is Engineer and Blockchain Researcher lead, Nipun Pitimanaaree. Nipun is an MIT graduate and four-time International Mathematical Olympiad gold medalist. Amongst his achievement is an algorithm that detects and trades arbitrage in the crypto sector.
The company has a product that is live on Ethereum called Alpha Homora. The protocol is designed to leverage an investor’s position in yield farming pools. They are working with SCB10X to launch a pair of new products, which will be announced before the end of 2020.
Why the Deal Matters
The DeFi sector currently had over $12 billion in total locked value as of October 2020. That figure has risen sharply in 2020 from less than $1 billion in May of this year. PayPal is currently working to bring crypto products to over 364 million users globally. The decision by PayPal will no doubt bring more people into the crypto sector.
With millions more expected to enter crypto markets, it will be easier to attract them to the DeFi sector. SCB 10X will work with Alpha Finance to ensure that they can bridge the gap between traditional finance and Decentralized Finance. To do this, they will develop DeFi products that are attractive to people who are used to products in traditional finance.
What the Leaders Had to Say
According to Tascha Punyaneramitdee, Lead at Alpha Finance Lab:
“Working closely with SCB 10X will empower Alpha Finance Lab to expand its DeFi ecosystem with valuable experience from the traditional financial sector to bridge the two worlds together.”
Kaweewut Temphuwapat, Head of Venture Builder, SCB 10X, had equally positive sentiments, he said:
“SCB 10X is committed to embracing emerging technologies with Alpha Finance Labs to create a unique suite of products that bridges the gap between the traditional and decentralized financial sectors.”
The partnership between SCB 10X and Alpha Finance Labs is quite significant. In an attempt to drive mainstream adoption into DeFi, it will be crucial for the two entities to work on some of the biggest obstacles around user experience such as:
- Low liquidity
- Overcollateralization
- Interoperability between blockchains
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