Crypto startup OpenTrade, a platform for stablecoin yield products, has raised a $4M seed extension round led by AlbionVC.
Existing investors a16z Crypto and CMCC Global also participated in the round. The capital will also be used to further enhance its existing product capabilities, and develop additional offerings including yield products backed by a variety of new asset types.
Launched in late 2022 and headquartered in London, OpenTrade allows companies building stablecoin-based financial services to extend the value of their digital dollar balances and products by adding the option to earn interest, fully backed by high quality ‘real world’ financial assets – completely embedded in existing apps/user journeys and integrated into their systems and back office operations.
Stablecoins, like USDC, are pegged 1 to 1 to a fiat currency like the US dollar, therefore puporting to provide a reliable medium of exchange and store of value. Stablecoins infrastructure is faster, less expensive, and more accessible than legacy rails.
Funds are secured through OpenTrade’s bank-grade legal off-chain asset management structure. As the demand for stablecoin yield products continues to grow, this funding will help OpenTrade scale its operations to meet the rising demand for its solutions, and secure the additional sales, marketing and implementation team needed to pursue, onboard and support new clients globally.
The funding round follows a string of high profile partnerships for OpenTrade, including with global centralised crypto futures and spot trading giant WOO X, and with Columbian neobank Littio.
David Sutter, CEO of OpenTrade, commented: “Stablecoins play a critical role in the crypto ecosystem, bridging that gap between digital assets and traditional finance. As the crypto ecosystem continues to mature, our technology empowers fintechs and exchanges to offer stablecoin yield products that are seamlessly integrated, safe and fast, matching high demand levels.
“This funding allows us to continue on our growth trajectory, building products for some of the biggest and most important leaders in the space. The caliber and experience of our partners is testament to the solutions we’ve built and the fantastic team we’ve got here at OpenTrade. Onwards and upwards.”
Jay Wilson, Partner at AlbionVC, added: “The job David and his team have done to successfully take their core product to market and secure high-profile partnerships is hugely impressive, especially given the business has only been operational for a short period of time.
“Stablecoin yield products are in high demand right now, but many businesses don’t know where to start in terms of building their own offering. That’s the gap in the market filled by OpenTrade who are building a core piece of infrastructure, offering a seamless and safe solution for partners to build and operate their own leading stablecoin yield products. I’m excited to work closely with David and the team on the next stage of their journey.”
Stablecoins are particularly important in Latin America, where around one third of individuals report having transacted with them.
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