Dubbed Mauve, this is the first compliant decentralised exchange that was specifically built to provide the best of both DeFi and TradFi to the crypto markets, according to Violet officials cited by fintech.global.
The Mauve platform requires its users to undergo rigorous compliance checks. For compliance-conscious users, these checks provide peace of mind and a boost in confidence to migrate to DeFi, particularly for those who are currently restricted to centralised and custodial exchanges. The platform is fully transparent and governed by audited smart contracts. It allows users to trade with an instant settlement, without relying on intermediaries.
The solution leverages DeFi architecture to enable self-custody, which means that funds always remain in the owner’s property without having to rely on a separate custodian. From a TradFi standpoint, the platform offers its users TradFi-level compliance guarantees in order to drastically reduce counterparty risk.
Violet’s on-chain compliance infrastructure issues privacy-preserving compliance credentials and supports multi-factor authentication for security and identity continuity. These credentials are composable across other applications, and they aim to position Mauve to become a cornerstone of a far-reaching compliant DeFi ecosystem.
The USD 15 million will be used to speed up the global adoption of the Mauve platform. Violet aims to unlock the full potential of DeFi in order to help it become the de-facto financial system of the 21st century. To this end, the company has focused its efforts on creating a privacy-protective compliance infrastructure that is directly embedded in the blockchain.
Violet officials cited by fintech.global revealed that Mauve represents a direct response to the fall of FTX, as the exchange’s bankruptcy filing as well as the way it handled customer funds have diminished trust in the crypto market. However, they also emphasised the importance of non-custodial crypto exchanges such as Mauve, as they allow users to trade without surrendering custody of their assets.
Violet’s co-founder talked about a future without intermediaries where all financial products and services run on decentralised crypto rails. However, in order to achieve this goal, he sees a need for an integration between TradFi and DeFi, an integration that Violet and Mauve can help solve. He also revealed plans to partner with other entities as Violet attempts to increase market trust in DeFi.
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