Sydney-based DeFi startup Tiiik, which offers a digital wallet that enables investors to earn interest on DeFi products, has closed its first seed funding round for A$5.2 million:
The capital raise was led by a mix of well-known players in the Australian fintech scene, as well as some high-profile global venture capital funds. Currently Tiiik only accepts funds from Australian accredited investors, but with this new capital raise it plans to broaden its offerings and make products available to retail investors in 2023.
Simplifying DeFi for the Masses
Tiiik launched in 2021 as a one-stop digital wallet featuring saving, spending and earning capabilities all on the same single balance. The company’s stated mission is to bring the advantages of DeFi and other crypto products to Australian investors and consumers in a way that reduces the complexity of crypto behind an easy-to-use interface.
Tiiik wants to enable everyday people to access the benefits of DeFi, without the complexity that typically comes with innovative financial technology. There is a big gap in the market for a platform that can help non-tech savvy people access a new asset class that is revolutionising the way people think about money.
Erez Rachamim, Tiiik co-founder
Tiiik’s savings product will reportedly offer 10 percent yield per annum, which will accrue daily. Users will be able connect their Tiiik wallets directly to their bank accounts, which should make it seamless to deposit and withdraw funds.
Prioritising Regulatory Compliance
Unlike most other DeFi savings products, Tiiik is very keen to operate firmly within domestic regulation. It has applied to the Australian Securities and Investments Commission for a wholesale Australia Financial Services Licence, which it will need to secure before offering any products to its waitlist of eager retail investors, who already number around 30,000.
Because of its more conventional fintech approach to regulatory compliance and efforts to create a more familiar user experience, Tiiik has been referred to by some as an example of a ‘crypto-mullet’: an emerging class of companies that present as traditional fintech on the front-end but leverage crypto technologies on the back-end.
Tiiik isn’t the first Australian-based example of a crypto-mullet – last year, fellow Aussie startup @Pay launched a buy-now pay-later platform which aimed to bridge the DeFi and e-commerce sectors.
On the back of ranking 12th of 154 countries last year on the Global DeFi Adoption Index, the launch of innovative homegrown DeFi products such as Tiiik further indicates the enthusiasm Australia has for the opportunities crypto presents.
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