Superstate, a firm specializing in asset management on the blockchain, secured $14 million in venture capital to advance the creation of regulated on-chain funds accessible to U.S. investors. The funding round was spearheaded by CoinFund and Distributed Global, with additional participation from Arrington Capital, Breyer Capital, CMT Digital, Department of XYZ, Folius Ventures, Galaxy Digital, HackVC, Modular Capital, Nascent, and Road Capital Management.
Superstate, led by Robert Leshner,
the founder of the decentralized finance (DeFi) lending platform Compound (COMP), is dedicated to building regulated and compliant investment options on public blockchains that are accessible to U.S.-based investors. The funds raised will be allocated for team expansion, developing private funds tailored for institutional investors, and establishing a framework for tokenized public funds.
The investment underscores the increasing shift toward utilizing tokenized assets, as the realms of traditional finance and blockchain technology intersect. Tokenization involves transforming conventional investments like bonds or gold, referred to as real-world assets (RWA), into digital representations that can be registered on a blockchain in the form of tokens. Even major banks are actively participating in this trend, aiming to leverage the perceived benefits of tokenization, including enhanced efficiency, transparency, faster settlements, and broader investor accessibility. Asset-management firm 21.co predicts that the tokenized asset market could reach $10 trillion by the close of the decade.
Leshner stated in the press release that the initial tokenized funds have limitations. They either operate within private blockchains or are situated in offshore entities, thereby excluding access for U.S. investors.
Earlier this year, Superstate submitted documentation to establish a U.S. government bond fund with a short-term focus, utilizing the Ethereum blockchain as a secondary record-keeping system.
Jake Brukhman, CoinFund’s founder and CEO, expressed in a statement that Superstate’s strategy for tokenization will connect top-tier, compliant financial products with the substantial benefits and innovation that decentralized finance (DeFi) is ready to bring to conventional finance.