Kyo Achieves $1 Billion Valuation: Wagering on Cross-Chain DeFi Integration During Industry Upheaval

Kyo Finance, a DeFi protocol focused on consolidating liquidity across various blockchain networks, has completed a $5 million Series A funding round led by Castrum Istanbul, with TBV and BZB Capital also joining. This investment places the company’s valuation at $1 billion, highlighting increasing institutional trust in DeFi’s capacity to simplify cross-chain transactions and minimize fragmentation in the cryptocurrency sector, according to

. The protocol’s primary objective is to establish a unified liquidity layer that removes obstacles between different blockchains, aligning with the industry’s broader push for greater interoperability.

This funding comes at a critical juncture for DeFi, as recent market volatility has showcased both the sector’s rapid progress and its inherent risks. Initiatives like Mutuum Finance, which is progressing through its roadmap with a testnet launch scheduled for Q4 2025, demonstrate the sector’s ongoing development. Mutuum’s emphasis on secure lending mechanisms and stablecoin integration signals a move toward more resilient infrastructure, as reported by

. However, the industry still faces significant hurdles, such as the collapse of synthetic stablecoins like Elixir’s deUSD, which dropped to $0.015 following Stream Finance’s $93 million loss that triggered a series of failures, according to . These setbacks have increased demands for greater transparency and improved risk management, prompting platforms like to introduce risk rating systems tailored to DeFi, as noted by .

Kyo Finance’s $5 million funding round comes as the DeFi sector seeks to balance innovation with security. While projects such as Mutuum prioritize audits, bug bounty programs, and interactive community initiatives to foster trust—as highlighted by GlobeNewswire—others are under scrutiny for issues related to leverage and counterparty exposure. The collapse of Stream Finance, for example, revealed vulnerabilities in interconnected lending protocols, with more than $284 million in related loans and stablecoins intensifying systemic risk, as detailed by Cointelegraph. These developments have led to renewed discussions about risk frameworks, with industry leaders calling for modular systems and tighter collateral requirements.

The DeFi ecosystem continues to evolve, with new projects introducing innovative solutions for credit and asset management. Gate SuperLink’s enterprise-grade connectivity platform, for instance, seeks to connect traditional and decentralized finance by allowing cross-platform netting without moving assets. Such advancements underscore DeFi’s shifting position in institutional finance, where regulatory certainty and technical reliability are essential for broader adoption.

As Kyo Finance expands, its future success will hinge on its ability to address these challenges while fulfilling its vision of unified liquidity. The $1 billion valuation signals strong confidence in DeFi’s future, but recent disruptions highlight the importance of balancing caution with innovation, as observed by LookonChain.