Superstate Raises $14 Million to Revolutionize Investing with Crypto-Style Tools: Compound Founder Leads the Way – Fortune
Introducing Superstate: Pioneering Crypto Protocol to Bring Benefits of DeFi to Mainstream Finance
The crypto world has seen many pioneers come and go, but one who stands out is Robert Leshner – the founder of the highly successful DeFi protocol, Compound. After introducing many to the world of automated, decentralized trading, Robert has now taken up a new venture to develop a project called Superstate. This project has the potential to revolutionize the finance industry by bringing added features of DeFi to mainstream finance.
What is Superstate?
Superstate is a project started by Robert Leshner, which aims to take full advantage of the decentralized finance (DeFi) protocols and bring these benefits to mainstream finance.
Superstate Raises $14 Million
On Wednesday, Superstate announced that it had successfully raised a $14 million Series A round led by Distributed Global and CoinFund. Whilst the company declined to disclose its valuation, it has already raised a seed round of $4 million back in June.
How Will Superstate Use Its Funds?
The funds raised by Superstate will be used to build out its team and services so that it can offer tokenized versions of bonds and other common assets for institutional investors. These assets can then be traded or lent on Uniswap-like platforms, with these transactions being implemented using smart contracts.
When Will Superstate’s Products Go Live?
At the moment, Superstate is focused on building the requisite financial plumbing and attaining regulatory clearances to launch its products in the US. Robert Leshner estimates that it might take as long as a few months before the products can go live, though this could still differ.
What’s Different About Superstate This Time Around?
Interestingly, the idea of using blockchains and DeFi-style mechanisms for conventional finance isn’t new. Even in 2018, startups like Harbor touted “security tokens” as a way of facilitating trading of real-world assets, but this didn’t catch on. Nevertheless, Robert Leshner remains confident that Superstate will be successful this time around due to increased awareness of blockchain benefits and the availability of more developers.
This confidence seems to be shared by many institutions, including banking giants JPMorgan and HSBC, which have both been developing their own blockchain solutions.
Firm Support from Investors
Rob Leshner’s project has clearly been able to secure strong support from a wide range of investors, including Breyer Capital, Galaxy, Arrington Capital, Road Capital, and numerous other venture funds. According to CoinFund CEO Jake Brukhman, Superstate’s approach to tokenization will bridge the gap between high-quality financial products and the massive advantages and innovation offered by DeFi.
Superstate’s Tokenized Products Ready to Launch Early 2021
With the use of funds secured by Superstate, Robert Leshner is hoping to have the first set of tokenized products available by the start of 2021. The products will be built on the Ethereum platform, though Superstate may also later consider deploying its services on other blockchains.
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