General Tensor acquires Backprop Finance to build DeFi infrastructure for decentralised AI
What's the deal? Toronto-based General Tensor has acquired Backprop Finance from Tensorplex Labs, gaining control of one of the highest-volume decentralised trading platforms on the Bittensor network. The deal gives General Tensor roughly one-third of Bittensor's trading volume and positions it for cross-chain expansion into the broader DeFi ecosystem.
The acquisition follows General Tensor'US$3.67M raise across pre-seed and seed rounds. Digital Currency Group (DCG) participated in the pre-seed and made a follow-on investment, while the most recent round added Good Morning Holdings — led by Lok Lee and backed by Goldman Sachs — alongside returning lead investor Lvna Capital.
Backprop Finance operates as an all-in-one trading terminal for Dynamic TAO (dTAO) subnet tokens. It includes a swap terminal, subnet analytics screener, gamified trader leaderboard, whale transaction alerts, and wallet-level monitoring.
Why now? Bittensor's trading activity has been growing, and Backprop already established itself as the primary destination for accessing and trading the network's subnets. Its largest user base is concentrated in Asian markets — one of the world's most active trading communities.
"Tensorplex built the strongest trading product in Bittensor. This acquisition represents a critical puzzle piece in our portfolio of assets as a driving force for network utility and adoption in the Asian market," said Mike Grantis, chief executive officer at General Tensor.
What could go wrong? Consolidation in a decentralised ecosystem can raise questions about neutrality and centralised control. Darwin Liew, co-founder of Tensorplex Labs, acknowledged this concern, saying the team sought "a steward who shares the same vision" and that the transition should keep Backprop "a neutral, high-performance utility that the entire community can rely on."
Cross-chain expansion also introduces technical and regulatory complexity — bridging assets between networks remains one of DeFi's most vulnerable attack surfaces.
The signal: The deal reflects a broader pattern of infrastructure consolidation in crypto's AI-adjacent ecosystems. As decentralised AI networks like Bittensor mature, the financial tooling around them is starting to look more like traditional fintech — with acquirers rolling up best-in-class products rather than building from scratch.
"General Tensor is doing what the best infrastructure companies do: they're building, consolidating, and integrating key components of the ecosystem," said Lok Lee, managing partner of Good Morning Holdings.
Read more: globenewswire.com
