Superstate, an asset management firm modernizing the infrastructure of investment funds, today announced a $14m first close of their Series A financing.
The capital will be used to expand their team, launch private funds to institutional investors, and create a framework for compliant, tokenized, publicly registered investment funds.
Superstate’s Series A was co-led by Distributed Global and CoinFund, with participation from Breyer Capital, Galaxy, Arrington Capital, Road Capital, CMT Digital, Folius Ventures, Nascent, Hack VC, Modular Capital, and Department of XYZ. Superstate previously raised a $4m Seed financing in June 2023 led by ParaFi, Cumberland, and 1kx.
“The future of investments are programmable, compliant, and transparent,” said Superstate Co-founder and CEO Robert Leshner, “To date, first-generation tokenized funds fall short; they either function within private blockchains, or exist in off-shore entities, removing access for U.S. investors. Superstate aims to bring on-chain advantages to U.S. investors.”
Superstate is developing regulated, self-custodied on-chain funds. These funds are designed to provide exposure to traditional assets via on-chain investment products, granting investors access to the speed, programmability, and compliance benefits of tokenization. The Firm's on-chain funds are designed to enhance investor experience with several key benefits:
• Investor-Directed Ownership: Self-custodied assets allow investors to move and settle their funds quickly, freely, and bilaterally.
• Next Generation Utility: Tokenized assets are programmable, and composable with on-chain contracts & applications. Automation and new use-cases are possible.
• Transparent, Embedded Compliance: With an on-chain fund, compliance is enforced in real-time—not after the fact. Transactions are compliant by default.
In June 2023, a draft prospectus was filed with the U.S. Security and Exchange Commission to create the Superstate Short-Term Government Bond Fund. As drafted, the Fund will be an open-ended mutual fund with a secondary record of ownership, tracked on the Ethereum blockchain.
“Superstate’s approach to tokenization will bridge the gap between high-quality compliant financial products and the massive advantages and innovation DeFi is poised to offer to traditional finance,” said CoinFund Founder & CEO Jake Brukhman. “We're excited to be part of their journey as they innovate in the space of real-world assets.”