OpenTrade has closed on a $4 million “Seed extension round” as it seeks to build out real-world asset-backed lending and stablecoin yield products.
The funding was led by AlbionVC, with a16z Crypto and CMCC Global returning as investors.
OpenTrade explains that its services aim to help neobanks, payment firms, and other Fintechs benefit from the growing stablecoin sector. The total market value of stablecoins stands at almost $200 billion.
OpenTrade uses Circle’s USDC, a dollar-based stablecoin, as an example. The company anticipates a “new wave of stablecoin apps to seamlessly generate stable returns (3-6% APR).” By having digital assets backed by RWAs or real-world assets, like US T-Bills, investors can generate yield with the complexity of the legacy banking system.
Funds committed to the platform are said to be fully secured through OpenTrade’s “bank-grade legal off-chain asset management structure.”
OpenTrade recently announced several partnerships, including trading platform WOO X and Latam neobank Littio. OpenTrade’s products are said to have processed over $100m in total transaction volumes for clients like Littio.
David Sutter, CEO of OpenTrade, says that stablecoins provide a bridge between traditional finance and the digital asset worked and their platform will allow clients to offer stablecoin yield products that are integrated safe and fast.
“This funding allows us to continue on our growth trajectory, building products for some of the biggest and most important leaders in the space. The caliber and experience of our partners is testament to the solutions we’ve built and the fantastic team we’ve got here at OpenTrade. Onwards and upwards.”
Based in London, OpenTrade, “an institutional-grade” platform, currently provides a white-label solution that allows them to leverage USDC and EURC
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