Margarita Finance has raised $1 million in pre-seed funding to target the structured finance market, according to a statement by the firm. The Zurich-based Fintech received the backing of Tomahawk VC, Outrun Ventures, several family offices, including Swiss-based N & V Capital, and market maker G-20 Group.
Margarita wants to bring the estimated $7 trillion structured products market on-chain using Solana. The company says the current ecosystem suffers from outdated infrastructure emblematic of TradFi.
The blockchain-based solution will leverage smart contracts and oracles to allow Margarita Finance to provide users the option to tailor investment products at lower costs, unmatched speeds. Its first product called “Yield Boosters”, is said to allow investors to earn double-digit yields on their BTC, ETH, and SOL with flexible lock-up periods from one day to three months.
“Our goal is to onboard the other 99% of global potential investors into onchain structured products,” said Benedikt Schuppli, co-founder of Margarita Finance. “DeFi, while innovative, remains too technically complex for most users. Of the one billion global potential investors, only 10 million currently use DeFi. Margarita Finance overcomes this hurdle by combining TradFi’s legal enforceability with the innovation of blockchain to unlock opportunities for everyone.”
Margarita Finance has also received a grant from the Solana Foundation.
