The company said it intends to use the funds to scale operations, enhance product capabilities, and develop additional offerings including yield products backed by new asset types.
OpenTrade’s platform allows companies building stablecoin-based financial services to earn interest, typically 3-6% APR, on their digital dollar balances, backed by high-quality assets such as U.S. Treasury Bills.
The London-based company, launched in late 2022, has been riding the recent boom in stablecoin markets.
The stablecoin market has over $175 billion currently in circulation and transaction volumes of $11.1 trillion rivaling those of Visa and MasterCard.
New applications and services built on ‘digital dollars’ like USDC have gained adoption from mainstream ‘non-crypto’ consumers and played a key role in the rapid growth of the stablecoin market.
“Stablecoins play a critical role in the crypto ecosystem, bridging that gap between digital assets and traditional finance,” said David Sutter, CEO of OpenTrade.
OpenTrade’s platform has already processed over $100 million in total transaction volumes for clients like Colombian neobank Littio, powering stable USD-denominated wealth generation opportunities for over 100,000 end users.
OpenTrade expects to build on its recent success as the crypto ecosystem continues to mature.
“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,” Sutter said.
The funding round was led by AlbionVC, with existing investors a16z Crypto and CMCC Global also participating.
“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,” Jay Wilson, Partner at AlbionVC said.
Source: Cryptocurrency - investing.com
