Superstate Secures $14m in Series A Financing

Published 5 months ago

Asset management firm, Superstate, has secured $14 million in the first close of their Series A financing round. The company is known for its work in modernizing infrastructure of investment funds.

This capital injection will be utilized to expand the team, launch private funds to institutional investors, and develop a framework for compliant, tokenized, publicly registered investment funds. The financing round was co-led by Distributed Global and CoinFund, with contributions from Breyer Capital, Galaxy, Arrington Capital, Road Capital, and other notable investors. This follows Superstate’s previous $4 million seed financing round in June 2023, led by ParaFi, Cumberland, and 1kx.

A New Era Of Investment

Superstate co-founder and CEO, Robert Leshner, commented on the future of investments, saying that they are becoming programmable, compliant, and transparent. He acknowledged that the first-generation tokenized funds have limitations as they either function within private blockchains or are based in off-shore entities, hindering access for U.S. investors.

Superstate’s goal is to overcome these challenges and bring the advantages of on-chain operations to U.S. investors. They are developing regulated, self-custodied on-chain funds designed to offer exposure to traditional assets through on-chain investment products.

Advantages of On-Chain Funds

The firm’s on-chain funds promise several benefits to investors including investor-directed ownership, next-generation utility, and transparent, embedded compliance. These funds allow investors to move and settle their assets quickly, freely, and bilaterally.

Moreover, tokenized assets are programmable and interact seamlessly with on-chain contracts and applications, enabling automation and the development of new use-cases. Compliance is also ensured in real-time, making transactions compliant by default.

Superstate has already submitted a draft prospectus to the U.S. Security and Exchange Commission in June 2023, proposing the creation of the Superstate Short-Term Government Bond Fund. This fund is designed as an open-ended mutual fund with a secondary record of ownership, tracked on the Ethereum blockchain.

Bridging the Gap in Finance

CoinFund Founder and CEO, Jake Brukhman, expressed his excitement about Superstate’s innovative approach to tokenization. He believes that it will bridge the gap between compliant financial products and the immense potential and innovation that decentralized finance (DeFi) offers to traditional finance.