fromcrypto – OpenTrade introduced on Monday that it has raised $4 million in seed funding to construct the way forward for real-world asset-backed lending and stablecoin yield merchandise.
The corporate mentioned it intends to make use of the funds to scale operations, improve product capabilities and develop extra choices, together with revenue merchandise backed by new asset lessons.
The OpenTrade platform permits corporations constructing monetary companies primarily based on stablecoins to earn curiosity, sometimes 3-6% APR, on their digital greenback balances which can be backed by high-quality property comparable to US Treasury payments.
The London-based firm, which launched in late 2022, has been experiencing a latest increase within the stablecoin markets.
The stablecoin market presently has greater than $175 billion in circulation and transaction volumes of $11.1 trillion rival these of Visa and MasterCard.
New functions and companies constructed on “digital {dollars}” comparable to USDC have gained acceptance from mainstream “non-crypto” shoppers and have performed a key position within the speedy development of the stablecoin market.
“Stablecoins play a significant position within the crypto ecosystem, bridging this hole between digital property and conventional finance,” mentioned David Sutter, CEO of OpenTrade.
The OpenTrade platform has already processed greater than $100 million in complete transaction volumes for shoppers comparable to Colombian neobank Littio, offering secure USD wealth creation alternatives for greater than 100,000 finish customers.
OpenTrade expects to construct on its latest success because the crypto ecosystem continues to mature.
“Because the crypto ecosystem continues to mature, our know-how permits fintechs and exchanges to supply stablecoin income merchandise which can be seamlessly built-in, safe, quick, and meet excessive ranges of demand,” mentioned Sutter.
The funding spherical was led by AlbionVC, with participation from present traders a16z Crypto and CMCC World.
“The work that David and his group have completed to efficiently carry their flagship product to market and safe high-profile partnerships is extraordinarily spectacular, particularly contemplating that the enterprise has solely been round for a short while,” mentioned Jay Wilson, Accomplice at AlbionVC. .
