OpenTrade, a platform specializing in on-chain institutional lending and yield products, has successfully secured $3.2 million in seed funding. This funding round saw participation from the a16z Crypto Startup Accelerator (CSX) alongside notable backers such as CMCC Global, Draper Dragon, Ryze Labs, and Plassa Capital. With this recent injection of capital, OpenTrade’s total funding reaches $4.45 million. The company plans to utilize these funds to bolster its team across various critical functions, as outlined by Jeff Handler, the firm’s co-founder and Chief Commercial Officer.
Leveraging the payment and DeFi infrastructure provided by Circle, the issuer behind stablecoins like USDC and EURC, OpenTrade facilitates the creation of on-chain lending products for regulated asset managers. These products offer yield opportunities by enabling the deposition of USDC or EURC into on-chain vaults adhering to specific investment criteria and target yields, according to information available on the firm’s website.
Handler emphasized the uniqueness of OpenTrade’s solutions within the market, highlighting the platform’s ability to deliver an enterprise-grade B2B2C product. This product empowers Centralized Exchanges (CEXs) and Neobanks to deploy Real World Asset (RWA)-backed yield products seamlessly within their existing platforms and applications. Such functionality is particularly valuable for companies utilizing USDC to facilitate digital dollar accounts for users outside the U.S.
Handler further explained that these companies seek to expand their product offerings with opportunities for users to earn stable, predictable yield. However, this must be achieved in a manner that instills trust by backing assets and operating models while ensuring accessibility for a wide range of users.
OpenTrade, headquartered in the UK, emerged from stealth mode in February 2023. Just three months later, the company secured $1.5 million in funding led by Sino Global Capital, with additional support from Circle Ventures, Kronos Research, Kyber Ventures, Polygon Ventures, and Outlier Ventures. Notably, in September 2023, OpenTrade collaborated with the crypto exchange WOO X to introduce tokenized U.S. Treasury bills into Asian markets, further expanding its reach and impact within the industry.
