OpenTrade is a firm that provides web3 treasurers and institutional investors access to on-chain structured financial products backed by investment grade financial assets therefore, providing predictable returns that are uncorrelated to crypto. The firm’s infrastructure embeds USDC payments and financing directly in B2B(Business to Business) networks and systems with an objective to connect DeFi(Decentralized Finance) liquidity to global supply chains. This integration in turn, offers buyers and suppliers a form of payment that is much faster, cheaper and more efficient. This integration also offers working capital finance to such businesses. The current legacy solutions do not offer this level of support to businesses.
OpenTrade has recently secured $1.5 million in a funding round led by crypto-native venture capital firm Sino Global Capital. Other investment firms that backed this round include Circle Ventures, Kronos Research, Kyber Ventures, Polygon Ventures and Outlier Ventures. The capital acquired from this financing round will facilitate OpenTrade’s operations scaling in the launch scheduled for the second half of this year.
The firm plans to launch liquidity pools for various financial products including US Treasury Bills, investment-grade commercial papers and investment-grade supply chain financing. This liquidity polls will offer tokenized access to traditional finance products such as short-term U.S. debt obligations backed by the government. this approach, that is, tokenized access to traditional finance offerings, is growing in popularity and aimed at allowing investors to access the crypto market while managing volatility in prolonged bear market conditions.
The firm has established its operations on Circle’s DeFi(Decentralized Finance) payment infrastructure and operates on both Ethereum and Polygon chains with the intention of leveraging the networks’ vast web of financial institutions and B2B(Business to Business) networks to give rise to on-chain liquidity pools. The liquidity pools are designed and tailored with specific investment criteria, underlying assets and target yields that make highly flexible in customization and appealing to a wide and diverse range of investors.
Each pool maintains its own stability and security with assets that back them being held in a bankruptcy remote structure that is regulated by a custodian in segregated accounts, that is, separate from the company’s assets therefore, minimizing the risk of a financial loss. This risk mitigation strategy is robust and ensures a precipitous fail, in the event it happens. Users can deposit their assets in a liquidity pool an get an ERC-20 token in return that indicates the proportion of their share in the liquidity pool. Users are also free to withdraw their assets by redeeming their liquidity tokens.
The firm’s products are composable across DeFi and crypto applications and are aimed at bringing real yields to DeFi. Curently, the firm’s products are available on a waitlist basis and potential customers can join the waitlist on the platform’s online platform.
