• Folks Finance raised $3.2M in an oversubscribed Series A round, valuing the DeFi platform at $75M, to expand its cross-chain liquidity solutions.
• The funding will boost Folks Finance’s xChain app, enabling seamless cross-chain lending and borrowing across major blockchain networks.

Folks Finance, a decentralized finance (DeFi) platform specializing in lending, borrowing, and digital asset management, has raised $3.2 million in an oversubscribed Series A funding round. This latest investment values the platform at $75 million and brings its total funding to $6.2 million, following a seed round in 2022.

The Series A round was led by Borderless Capital, with additional support from SOVO Ventures, Mapleblock, and Algorand Ventures, among others. The funding aims to enhance Folks Finance’s ability to address liquidity fragmentation in the DeFi ecosystem, particularly through its flagship xChain application.

Since its mainnet launch in 2022, Folks Finance has steadily grown its user base, recording over 15,000 active wallets monthly and achieving a peak total value locked (TVL) of $220 million. The platform offers lending, borrowing, swaps, liquid staking, and fiat on/off ramps, providing a decentralized alternative to centralized exchanges.

A significant focus for Folks Finance is its xChain app, which enables seamless cross-chain lending, borrowing, and trading across multiple blockchain networks, including Avalanche, Base, Ethereum, Arbitrum, and BNB Chain. By utilizing technologies like Chainlink CCIP, Wormhole, and Circle CCTP, the platform allows users to deposit assets on one blockchain and borrow on another, streamlining cross-chain transactions and reducing liquidity fragmentation.

“The future of DeFi is crosschain, and with the launch of our xChain App, we’re empowering users with unprecedented crosschain flexibility and efficiency. This round of funding will allow us to continue innovating and expanding our vision of a truly multichain DeFi hub,” said Benedetto Biondi, CEO of Folks Finance.

The company plans to expand xChain’s network integrations, further solidifying its multichain ecosystem. This move is intended to provide users with a more unified liquidity framework, addressing one of DeFi’s critical challenges.

Speaking on the funding, Amit Mehra, partner at Borderless Capital, highlighted Folks Finance’s role in redefining cross-chain liquidity and interoperability, emphasizing its innovative approach to managing assets across blockchain networks.