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8:10 PM · Nov 25, 2024 – OpenTrade, a leading platform for real-world asset (RWA)-backed stablecoin yield products, has announced a successful $4 million seed extension round. The round was led by AlbionVC, with participation from existing investors a16z Crypto and CMCC Global. This injection of capital will enable OpenTrade to scale its operations, expand its team, and further develop its innovative product suite.
OpenTrade addresses the growing demand for stablecoin yield products by providing a seamless and secure solution for fintech companies and exchanges. The platform allows businesses to offer interest-bearing stablecoin accounts backed by high-quality RWAs, such as U.S. Treasury Bills, without the complexities and costs associated with traditional banking infrastructure. This empowers users to generate yield on their digital dollar holdings while maintaining the stability and accessibility of stablecoins.
Addressing the Booming Stablecoin Market
The stablecoin market has experienced explosive growth, with over $175 billion currently in circulation and transaction volumes exceeding $11.1 trillion, rivaling those of Visa and MasterCard. This growth is particularly evident in regions like Latin America, where stablecoin adoption for everyday purchases is rapidly increasing. OpenTrade is strategically positioned to capitalize on this trend by offering a secure and efficient platform for generating yield on these digital assets.
Key Features and Benefits of OpenTrade:
- Seamless Integration: OpenTrade offers a powerful API and blockchain protocol for seamless integration with existing applications and back-office systems. This allows businesses to easily embed stablecoin yield products into their current user journeys.
- Security and Compliance: OpenTrade prioritizes security and compliance through a bank-grade legal off-chain asset management structure. Funds are fully secured, providing peace of mind for users and partners.
- Diverse Product Offerings: OpenTrade currently offers fixed-term US Treasury Bill Vaults, flexible USDC and EURC Vaults, and Rates+ Vaults backed by investment-grade corporate bonds and other assets. The company is also developing new products, including high-yield corporate bond and emerging market bond vaults.
- Experienced Leadership: OpenTrade's leadership team comprises industry veterans with extensive experience in traditional finance and digital assets, having previously worked at institutions like Barclays, Circle, Coinbase, Meta, PwC, and Standard Chartered Bank.
Strategic Partnerships and Future Growth
OpenTrade has already secured several key partnerships, including collaborations with WOO X, a global crypto exchange, and Littio, a Colombian neobank. These partnerships have facilitated over $100 million in transaction volume, providing stable USD-denominated wealth generation opportunities for over 100,000 end users.
With the new funding, OpenTrade plans to expand its sales, marketing, and implementation teams to onboard new clients globally. The company will also invest in enhancing its existing product capabilities and developing new offerings to cater to the evolving needs of the market.
Quotes from Key Stakeholders:
David Sutter, CEO of OpenTrade: "Stablecoins are crucial in bridging the gap between digital assets and traditional finance. As the crypto ecosystem matures, our technology empowers fintechs and exchanges to offer seamlessly integrated, safe, and fast stablecoin yield products, meeting the high market demand."
Jay Wilson, Partner at AlbionVC: "The work David and his team have done to bring their product to market and secure high-profile partnerships is remarkable. OpenTrade fills a critical gap in the market, providing a seamless and secure solution for partners to build and operate their own leading stablecoin yield products."
About OpenTrade:
OpenTrade is a platform for real-world asset-backed stablecoin yield products. The company provides fintechs and exchanges with the tools to offer interest-bearing stablecoin accounts backed by high-quality assets like U.S. Treasury Bills. OpenTrade's mission is to make stablecoin yield accessible, secure, and transparent for all.
About AlbionVC:
AlbionVC is a leading venture capital firm focused on early-stage investments in technology companies. The firm has a strong track record of supporting successful businesses across various sectors.
About a16z Crypto:
a16z Crypto is a dedicated crypto fund within Andreessen Horowitz, investing in and supporting the development of the decentralized web.
About CMCC Global:
CMCC Global is a venture capital firm focused on investments in blockchain and digital asset companies. The firm has a global presence and invests in companies across different stages of development.
Compiled by CMO Intern team
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