Exploring the Future of Decentralized Finance with Eric Chen, Co-Founder, Injective Foundation

In this exclusive interview, we sit down with Eric Chen, Co-Founder at Injective Foundation, to dive deeper into how Injective is driving DeFi innovation, its collaboration with Rakkar, Asia’s fastest growing digital asset custodian, and the critical role of secure digital asset custody in building trust and scalability for institutional and retail users alike.

Injective is a cutting-edge layer-1 blockchain platform built for finance. It leverages high-performance infrastructure capable of processing up to 25,000 transactions per second with near-zero gas fees. Injective's innovative features include the world's first on-chain derivatives orderbook, a sophisticated Real World Asset (RWA) module, and an advanced exchange module. The platform's developer-friendly environment, with plug-and-play modules and deep liquidity support, enables rapid creation of complex dApps. With its robust interoperability, support for CosmWasm and soon to support EVM smart contracts, and a growing ecosystem of projects, Injective has established itself as a leading platform for building next-generation Web3 applications, particularly in DeFi

Eric sheds light on the challenges and opportunities within the DeFi space and provides insights into the collaboration between Injective and Rakkar, setting a new benchmark for the industry.

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1. Can you give us a quick overview of what Injective is and how it differentiates itself in the blockchain ecosystem? What inspired the creation of Injective, and what problem does it aim to solve?

Eric: Injective is a highly performant layer-1 blockchain optimized for building sophisticated decentralized finance (DeFi) applications. We differentiate ourselves through our unique combination of speed, interoperability, and advanced financial primitives. Injective can process up to 25,000 transactions per second with near-zero gas fees, making it one of the fastest and most cost-efficient blockchains in the industry.

What inspired Injective's creation was the need for a blockchain specifically designed for finance. Traditional blockchains often struggle with the complex requirements of DeFi applications, leading to slow transactions and high fees. We aimed to solve this by building a blockchain that could handle advanced financial products like derivatives and cross-chain trading with the speed and efficiency of traditional finance systems.

Injective stands out with its innovative features like the world's first fully on-chain derivatives orderbook and a sophisticated Real World Asset (RWA) module. These allow for the creation of complex financial instruments and the integration of traditional assets into DeFi.

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2. Both Injective and digital asset custodians such as Rakkar play critical roles in driving institutional adoption of digital assets. How does Injective plan to engage with institutions, and what role does secure digital asset custody play in this strategy?

Eric: Engaging with institutions is a key focus for Injective. We're taking a multi-faceted approach:

Firstly, we're building institutional-grade infrastructure. Our RWA module, for instance, provides advanced solutions for creating and managing permissioned assets, making Injective attractive to institutional players.

Secondly, we're forming strategic relationships. For example, our collaboration with Agora for their AUSD stablecoin demonstrates our ability to work with insitituional grade projects that have the backing of large multinational funds. In fact, AUSD has gone from 0 to over $10M minted on the chain in a matter of a week.

Secure digital asset custody is crucial in our institutional strategy. Custodians like Rakkar provide the security and compliance that institutions require. This type of integration enhances security and compliance for investors, driving institutional adoption in decentralized finance.

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3.  How does Injective’s decentralized nature enhance its appeal to institutional clients?

Eric: Injective's decentralized nature is a significant draw for institutional clients for several reasons:

Firstly, it offers enhanced security. Unlike centralized systems with single points of failure, Injective's decentralized structure makes it more resilient to attacks and system failures. The Injective blockchain is secured by many top companies in both DeFi and TradFi like: Galaxy Digital, NTT Digital, Hex Trust and now Rakkar.

Secondly, it provides greater transparency. All transactions on Injective are recorded on a public ledger, allowing for real-time auditing and verification. This is crucial for institutions that require high levels of accountability.

Lastly, our RWA module, where which allows institutions to build compliant applications and permissioned digital assets. This aligns with the growing trend of institutional investors seeking more active roles in building institutional products and trading digital assets in a compliant way.

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4. Innovation is key to staying ahead in the blockchain space. What potential synergies do you see between Injective and Rakkar for the future of institutional-grade DeFi solutions?

Eric: The potential synergies between Injective and custodians like Rakkar are significant. Injective provides the advanced DeFi infrastructure, while Rakkar offers institutional-grade custody solutions. Together, we can create a comprehensive ecosystem that meets all the needs of institutional clients.

One of the ways we can both serve institutional clients is with our latest integration of Rakkar’s custody services on Injective. This would allow institutions to seamlessly trade on Injective while their assets remain securely stored with Rakkar. We could also collaborate on developing new financial products that leverage both Injective's advanced trading capabilities and Rakkar's secure custody.

Another potential area of collaboration is in regulatory compliance. By combining Injective's transparent blockchain with Rakkar's compliance expertise, we could develop solutions that make it easier for institutions to participate in DeFi while meeting their regulatory obligations.

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5. Can you share your perspective on the importance of custodians like Rakkar in the digital asset ecosystem?

Eric: Custodians like Rakkar play a crucial role in the digital asset ecosystem. They provide the security and regulatory compliance that institutional investors require to enter the crypto space. Without trusted custodians, many institutions would be unable to participate in digital asset markets due to regulatory constraints or risk management policies.

Custodians also help bridge the gap between traditional finance and DeFi. They provide familiar services that institutions are accustomed to in traditional markets, making the transition to digital assets smoother.

Moreover, custodians contribute to the overall maturation of the digital asset market. Their presence signals to regulators and traditional financial institutions that the crypto industry is developing the necessary infrastructure for widespread adoption.

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6. What trends do you see shaping the future of decentralized finance, and how is Injective positioning itself to stay ahead?

Eric: Several key trends are shaping the future of decentralized finance:

Firstly, the tokenization of real-world assets (RWAs) is gaining significant traction. As of January 2025, the total market capitalization of RWAs across all blockchain networks has surged to an impressive $36 billion. Injective is at the forefront of this trend with our RWA module, which allows for the creation and management of tokenized real-world assets.

Secondly, institutional adoption of DeFi is accelerating. We're seeing this with the launch of products like BlackRock's BUIDL index on Helix, one of Injective’s premier digital asset DEXs. Injective is well-positioned to capitalize on this trend with our institutional-grade infrastructure and integrations.

Thirdly, cross-chain interoperability is becoming increasingly important. Injective's native support for cross-chain trading puts us ahead of the curve in this area.

Lastly, the integration of AI with DeFi is an emerging trend that we're watching closely. We're exploring ways to leverage AI to enhance trading strategies and risk management on our platform through products like iAgent 2.0 and integrations with Sonic and Allora.

To stay ahead, Injective is continuously innovating. We're expanding our ecosystem, which now encompasses over 100 integrations. We're also focusing on enhancing our cross-chain capabilities and developing new financial primitives to meet the evolving needs of both retail and institutional users.

In conclusion, Injective is at the forefront of the DeFi revolution, driving innovation and institutional adoption. Our advanced technology, strategic collaborations, and focus on real-world asset integration position us well to shape the future of finance.

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Rakkar is proud to announce its support for Injective, including the qualified custody of $INJ and its native Layer 1 blockchain, ensuring secure asset management and seamless accessibility. This collaboration underscores Rakkar’s commitment to providing security and accessibility for institutional investors to capture opportunities within the DeFi ecosystem while empowering platforms like Injective to scale with confidence.

For more information about the partnership and the services offered, please visit Rakkar’s official website and Injective’s official website.  

About Injective:

Injective is a lightning-fast interoperable layer one blockchain optimized for building the premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps. INJ is the native asset that powers Injective and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.

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