Superstate, an asset-management company based on blockchain technology, raised $14 million in venture finance to create regulated on-chain funds that are accessible to investors in the US.Distributed Global and CoinFund were the leaders in the round.Participating companies included Arrington Capital, Breyer Capital, CMT Digital, Department of XYZ, Folius Ventures, Galaxy Digital, HackVC, Modular Capital, Nascent, and Road Capital Management.
Superstate is committed to creating legally-required investment vehicles that are accessible to US-based investors using public blockchains.Under the direction of Robert Leshner, the creator of the decentralized finance (DeFi) lending platform Compound (COMP), the business plans to use the money for team growth, the creation of institutional investor-only private funds, and the development of a tokenized public fund structure.
As traditional banking and blockchain technology intersect, the investment emphasizes the growing tendency toward the utilization of tokenized assets.The process of turning real-world assets (RWAs), like gold or bonds, into virtual representations that may be registered as tokens on a blockchain is known as tokenization.The race to unleash the potential benefits of tokenization, which some claim include enhanced efficiency and transparency, faster settlement times, and wider investor access, has even drawn the attention of major banks.The tokenized asset market may reach $10 trillion by the end of the decade, according to asset-management company 21.co.
“The first-generation tokenized funds fall short,” Leshner said in the press release. “They either function within private blockchains or exist in off-shore entities, removing access for U.S. investors.”
Superstate submitted a proposal earlier this year to establish a short-term U.S. government bond fund with Ethereum serving as a backup record-keeper.
“Superstate’s approach to tokenization will bridge the gap between high-quality, compliant financial products and the massive advantages and innovation DeFi is poised to offer to traditional finance,” Jake Brukhman, founder and CEO of CoinFund, said in a statement.