Huobi DeFi Labs, Huobi Group’s newly-formed decentralized finance (DeFi) division, has announced the launch of the Global DeFi Alliance, an international consortium of centralized and decentralized financial service providers and platforms.

The alliance was initially joined by Huobi in conjunction with the Maker Foundation, Compound, NEST communities, and dYdX to jointly advance DeFi research and development, promote best practices, and facilitate cross-border collaboration and ecosystem development between East and West.

The launch of the Global DeFi Alliance comes amid a spike in DeFi interest from investors and financial institutions—both traditional and digital—and marks an underlying shift in the financial sector as potential collaborations between centralized and decentralized organizations present promise a myriad of new opportunities in DeFi and beyond. 

Through extensive cooperation both internally and with other key stakeholders, the new alliance aims to become the first to bridge centralized and decentralized financial communities, as well as unite the fragmented DeFi communities across the Asia-Pacific and Western regions.

The first batch of alliance members includes five of the top teams in crypto and DeFi, including the Maker Foundation, a software development contributor to the Maker Protocol, an Ethereum-based platform where users can self-generate Dai, the most used decentralized stablecoin in Defi; Compound, the largest decentralized lending protocol globally; NEST Protocol, the first decentralized price oracle network that uses decentralized incentive mechanism to provide verified prices on the chain; dYdX, the largest decentralized margin and derivatives exchange;; Huobi DeFi Lab, a subsidiary of the world’s leading digital asset financial service provider.

In the coming months, the founding members of the Global DeFi Alliance plan to admit additional DeFi and CeFi members, including but not limited to wallets, protocols, research institutions, investment institutions, security companies, trading firms, traditional financial institutions, and more.

The alliance was first spearheaded by Huobi DeFi Lab under the guidance of Huobi CIO Sharlyn Wu, who previously oversaw blockchain strategy and investment at China Merchant Bank International (CMBI). The alliance is the first of many planned initiatives of Huobi DeFi Labs, which was only recently established to focus on DeFi research, investment, incubation, and ecosystem development for Huobi Group.