OpenTrade, a London-based cryptocurrency startup focused on stablecoin yield products, has obtained an extension of its seed funding round to $4 million, led by AlbionVC. Other investors who participated in the funding round include a16z Crypto and CMCC Global. This funding will be used for the development of new offerings by the company and enhancing existing ones, with plans for yield products backed by a variety of asset types.
Launched last late 2022, OpenTrade provides a platform targeting companies developing stablecoin-based financial services. By combining the former’s systems with its user journeys, OpenTrade empowers businesses to be able to add an earning option on their stablecoins. These yield products are entirely backed by high-quality “real world” financial assets, providing users with a safe and seamless avenue to earn returns on digital dollar balances.
Stablecoins such as USDC are digital currencies tied 1:1 to fiat currencies, such as the dollar. They were designed as a reliable store of value and medium of exchange but with faster, cheaper, and more accessible infrastructure compared to traditional financial systems. OpenTrade’s platform makes use of a bank-grade legal off-chain asset management structure that keeps funds secure in order to provide its users with a highly secure and reliable experience.
The company will scale its operations with this new funding as demand for stablecoin yield products continues to rise. The investment will support the recruitment of additional sales, marketing, and implementation teams to pursue new clients and support existing ones worldwide. OpenTrade has already secured high-profile partnerships, including collaborations with WOO X, a global crypto trading platform, and Littio, a Colombian neobank.
According to David Sutter, CEO of OpenTrade, he is excited by the funding and where the company’s prospects are headed. “Stablecoins are crucial in making the transition between digital assets and traditional finance possible,” he said. “As the crypto ecosystem matures, our technology enables fintech companies and exchanges to provide seamless and secure yield products on stablecoins.”
Sutter highlighted that the funding would help OpenTrade continue building products for major players in the financial space. “The caliber and experience of our partners speak volumes about the solutions we’ve developed and the outstanding team at OpenTrade,” he added.
Jay Wilson, Partner at AlbionVC, also praised the company’s progress. David and his team have done a remarkable job bringing their core product to market and securing strategic partnerships in such a short time,” he said. “Stablecoin yield products are in high demand, but many companies are unsure of how to implement them. OpenTrade fills this gap by offering a core infrastructure solution that enables partners to create and operate stablecoin yield products in a safe and seamless manner.
Stablecoins have had a lot of traction. In Latin America, for instance, a third of its population has reportedly used these coins to make transactions. OpenTrade’s platform will help expand access to yield products, especially in regions with limited or no traditional banking services.
OpenTrade’s products have already processed more than $100 million in aggregate transaction volume for clients like Littio, delivering stable USD-denominated wealth-generation opportunities for over 100,000 end-users. With this new funding, OpenTrade hopes to accelerate its mission of offering institutional-grade solutions for RWA-backed stablecoin yield products that are further backing the global movement toward decentralized finance.
The round, a new funding stage, puts OpenTrade at an essential inflection point as the organization continues to develop its platform and fuel innovation within the crypto space. Backed by its white-label offerings and stablecoin yield products that are secure, open, and real-world assets, OpenTrade stands well at the forefront of creating seamless transition points between traditional finance and digital assets, which helps make fintechs and cryptocurrency exchanges deliver better financial experiences to users around the globe.
