- Summary:
- Superstate is leveraging blockchain technology to offer US investors access to regulated tokenised funds, with on-chain benefits.
Superstate, a blockchain-based asset management service, has raised $14 million in venture capital funding from investors led by CoinFund and Distributed Global to create regulated, on-chain funds for investors in the United States. The Series A round also saw participation from Breyer Capital, Galaxy, Arrington Capital, Road Capital, CMT Digital, Folius Ventures, Nascent, Hack VC, Modular Capital, and Department of XYZ.
The latest funding means that Superstate has now raised a total of $18 million after receiving $4 million in early funding in June.
Superstate will use the newly acquired funds to expand its workforce and create private funds that will give large investors access to the “programmable” features of cryptocurrencies. In practise, this will likely include facilitating interest-bearing transactions via tokenized bonds or other common assets that investors can trade or lend on platforms powered by smart contracts.
The shifting perspective on tokenisation by institutions
Tokenized funds from the first generation have failed so far because they are either restricted to private blockchains or are based in offshore jurisdictions, making them inaccessible to investors in the United States. Superstate aspires to offer on-chain benefits to investors in the United States. Superstate’s self-custodied funds will provide investors with on-chain investment products that allow them to buy traditional assets with the advantages of tokenization, such as speed and low transaction costs.
“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,” said CoinFund CEO Jake Brukhman.
Superstate employs blockchain for tokenising certain elements of investment products. The latest funding comes amid the rising popularity in the use of blockchain technology for the creation of innovative financial products with the aim of improving use and safety. Tokenized assets will be composable with on-chain contracts and applications. This will make it easy for investors to transfer and settle funds quickly while maintaining compliance in real-time.