TLDR:
- Matthew Homer, the ex-DFS regulator, raised $5.1 million for a crypto venture fund called the Department of XYZ.
- The fund is backed by advisors such as the Winklevoss twins and Robert Leshner.
Matt Homer, a former senior superintendent at the New York Department of Financial Services, has launched the Department of XYZ, a crypto-focused venture fund that recently raised $5.1 million. This fund is unique in the sense that it aims to provide advisory support to startups rather than leading funding rounds. The limited partners backing this fund include former regulators from different agencies and top industry participants like the Winklevoss twins and Robert Leshner.
During his time at DFS, Homer played a crucial role in overseeing crypto regulation, including leading the research and innovation division. His experience at DFS made him realize the potential of crypto to offer more transparency compared to traditional financial institutions. After leaving DFS, Homer worked at Nyca Partners, a fintech VC firm, before starting the Department of XYZ.
Robert Leshner, the founder of Compound, praised Homer for his regulatory advice and brought XYZ into the Series A of his new company, Superstate. Homer’s fund will focus on financial infrastructure, stablecoins, and DeFi platforms, rather than consumer apps or speculative assets. Despite the uncertain regulatory environment in the U.S., Homer believes that he can help founders navigate complex regulatory questions and avoid critical mistakes.
