OpenTrade is a provider of structured financial products on-chain for Web3 treasuries, businesses and governments. The funding round was led by venture capital firm Sino Global Capital, a crypto-native.

Circle Ventures and Kronos Research were also involved in the round of funding, as well as Kyber Ventures Polygon Ventures and Outlier Ventures. OpenTrade will use the capital to scale up its operations in preparation for the launch of its product in the second half this year.

Initial products include U.S. Treasury Bills, investment-grade Commercial Paper and investment-grade Supply Chain Financing. Tokenized access traditional finance products such as short-term U.S. government-backed debt obligations has grown in popularity. It is a way for investors to gain access to the crypto market, while managing volatility during a prolonged bear market.

Decentralized Finance (DeFi), a protocol built on Circle’s Decentralized Finance and Payment infrastructure, runs on Polygon on Ethereum.

What it does

OpenTrade, which was founded in London and Palo alto earlier this year, uses a global network to create on-chain liquidities pools, with specific investment criteria and underlying assets, and target yields. This is according to their website. To help reduce risks, assets backing each pool are kept in segregated account by a regulated custody in a bankruptcy-remote structure.

Users can deposit USDC or EUROC stablecoins from their wallets to the OpenTrade liquidity pool. The user is given an ERC-20 token that represents a pro-rata claim to the pool’s net asset value. The user can redeem their liquidity pool tokens in exchange for USDC or EUROC. This amount will include the pro-rata share of principal and interest.

Financial backing

OpenTrade’s founding team includes Dave Sutter, CEO, and Jeff Handler as Chief Commercial Officer. Both previously worked for Centre, a consortium founded by Circle and Coinbase in order to govern USDC. Michele Bisceglia is also a member of the team. She was previously a Partner at AgFe, an advisory and asset-management firm.

Five Sigma was launched by Bisceglia, an adviser at AGFE, and Steve White as part of the formation of OpenTrade. It is a structured finance and investment consulting firm spun off from AGFE. This firm will manage OpenTrade’s off-chain activities.

Five Sigma manages assets worth over $700,000,000.

Read more: Crypto Trading Legend’s Next Move is Bringing U.S. Treasurys To Blockchains With Plans For Corporate Bonds Too

Parikshit Miishra is the editor.