Decentralized exchange (DEX) aggregator 1Inch has successfully closed a $175 million Series B funding round, led by prominent crypto financial services firm Amber Group. This significant investment marks a pivotal moment in the evolution of decentralized finance (DeFi), reinforcing institutional confidence in scalable, user-first DeFi infrastructure.
The round attracted participation from approximately 50 leading investors, including Jane Street, VanEck, Fenbushi Capital, Alameda Research, Celsius, Nexo, Tribe Capital, and Gemini Frontier Fund. The initial fundraising target was set at $70 million, but overwhelming demand prompted the team to scale the round to $175 million—demonstrating strong market appetite for compliant, institution-ready DeFi solutions.
How 1Inch Powers Smarter DeFi Trading
At its core, 1Inch operates as a decentralized finance (DeFi) aggregator, engineered to optimize token swaps across multiple liquidity sources. Rather than relying on a single decentralized exchange or liquidity pool, 1Inch scans dozens of DEXs—including Uniswap, SushiSwap, and Curve—to identify the most efficient trading routes.
By splitting large orders across various platforms and leveraging advanced routing algorithms, 1Inch minimizes slippage, reduces transaction costs, and maximizes returns for users. This functionality has made it a go-to platform for both retail traders and sophisticated investors navigating the fragmented DeFi landscape.
👉 Discover how professional traders use smart routing to maximize returns on decentralized markets.
Institutional On-Ramp: The Vision Behind 1Inch Pro
With this new capital injection, 1Inch is accelerating its roadmap to bridge traditional finance (TradFi) with decentralized ecosystems. A central pillar of this strategy is the development of 1Inch Pro, a secure, scalable platform tailored specifically for institutional investors in the United States and Europe.
Sergej Kunz, co-founder of the 1inch Network, emphasized that the next wave of DeFi adoption will be driven by institutions rather than retail users.
“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,” said Kunz. “We have already started work in that direction by attracting some key players from the traditional finance markets, and this collaboration will only accelerate over the next few years.”
1Inch Pro is being designed as a permissioned service, integrating compliance protocols that meet enterprise-grade security standards and adhere to local regulatory frameworks. This approach allows financial institutions to access DeFi opportunities—such as yield generation, liquidity provision, and hedging—while maintaining regulatory compliance and operational integrity.
Expanding the 1INCH Token Utility
Beyond infrastructure development, the funding will also support the expansion of the 1INCH governance token’s utility within the ecosystem. In Q1 2022, 1Inch introduced a new protocol feature that enables users to stake 1INCH tokens as an insurance mechanism against protocol losses.
Under this model:
- Users can stake their 1INCH tokens to backstop potential risks.
- In return, they earn a share of protocol fees generated across 1Inch services.
- This creates a decentralized risk mitigation layer while incentivizing long-term participation.
This innovation strengthens the economic moat around the 1INCH token, transforming it from a governance asset into a multifunctional utility token with real yield-bearing potential.
Transitioning Toward Full Decentralization: The 1Inch DAO Initiative
A critical component of 1Inch’s long-term vision is full decentralization through the 1Inch DAO (Decentralized Autonomous Organization). Currently in transition, the DAO aims to transfer ownership and governance control of both the network’s protocols and the 1INCH token to the community.
Once fully operational, the DAO will empower token holders to:
- Propose and vote on protocol upgrades
- Influence treasury allocations
- Shape future product development
“The addition of new participants to the 1inch Network will lead to further decentralization of the 1inch DAO,” the team stated, “making it more democratic by allowing everyone's vote to matter.”
This shift reflects a broader trend in DeFi: moving away from centralized control toward community-driven models that align incentives and promote transparency.
Scaling Team and Technology for Global Growth
To support these ambitious goals, 1Inch plans to double its global team over the next few years. Currently employing over 70 professionals across engineering, product, compliance, and business development, the company is actively hiring talent focused on institutional integration, cybersecurity, and regulatory strategy.
Growth will be concentrated in three key areas:
- Product innovation: Building next-gen trading interfaces and analytics tools
- Compliance infrastructure: Ensuring alignment with evolving global regulations
- Developer ecosystem: Encouraging third-party integrations and API usage
👉 See how top DeFi platforms are integrating compliance without sacrificing decentralization.
Core Keywords & SEO Optimization
The following core keywords have been naturally integrated throughout this article to enhance search visibility and align with user intent:
- DEX aggregator
- DeFi platform
- 1Inch Network
- institutional DeFi
- decentralized exchange
- 1INCH token
- DAO governance
- crypto funding round
These terms reflect high-intent search queries related to decentralized finance innovations, investment trends, and institutional adoption pathways.
Frequently Asked Questions (FAQ)
What is a DEX aggregator?
A DEX aggregator is a platform that scans multiple decentralized exchanges to find the best available prices for token swaps. It improves efficiency by combining liquidity from various sources, reducing slippage and optimizing trade execution.
Why did 1Inch raise $175 million?
The funds will be used to develop 1Inch Pro for institutional investors, expand compliance-ready infrastructure in the U.S. and Europe, enhance the utility of the 1INCH token, and support global team growth.
What is 1Inch Pro?
1Inch Pro is a secure, permissioned version of the 1Inch platform designed for institutional clients. It includes enterprise-grade security features and compliance protocols to meet regulatory requirements in traditional financial markets.
How does the 1INCH token work?
The 1INCH token serves as a governance asset within the 1Inch DAO. Users can stake it to participate in decision-making and earn rewards. Additionally, new features allow stakers to provide insurance coverage for the protocol in exchange for fee shares.
Is 1Inch fully decentralized?
While 1Inch is transitioning toward full decentralization via its DAO model, it currently operates under hybrid governance. The goal is to eventually place all protocol decisions and treasury management under community control.
Who led the Series B funding round for 1Inch?
The $175 million Series B was led by Amber Group, with participation from major firms including Jane Street, VanEck, Alameda Research, Nexo, and Gemini Frontier Fund.
👉 Explore how emerging DeFi platforms are securing major funding from global institutions.
Final Thoughts: Building the Future of Institutional DeFi
The latest funding milestone underscores 1Inch’s strategic positioning at the intersection of decentralized innovation and institutional readiness. By combining cutting-edge aggregation technology with compliance-focused product design, 1Inch is paving the way for responsible, scalable DeFi adoption.
As the line between traditional finance and blockchain-based systems continues to blur, platforms like 1Inch are proving that decentralization and regulatory compliance are not mutually exclusive—but can instead work hand-in-hand to build more inclusive financial systems.
With robust backing, clear product direction, and a growing community-driven governance model, 1Inch is well-positioned to lead the next phase of DeFi evolution.