Secured Finance, a platform for crypto lending and derivatives, secures $ 4 million through seed cycle led by GSR Markets
Secure financing, a platform provider for crypto lending and the derivatives market, says it has acquired $ 4 million in equity in its “oversubscribed” round.
The successful increase, with a demand for “more than double” Secured Finance’s original target, was co-led by GSR Markets, a leading crypto trading company; open source research, development and deployment laboratory Protocol laboratories; venture capital firm FinTech collective; global technology investment firm HOF capital; and strategic investment arm, Huobi Enterprises.
As mentioned in a statement shared with CI, a number of leading individual investors have also made contributions. They repeatedly include James DeNaut, board member of Nomura Holding America, Vinny Lingham, South African entrepreneur and CEO of Civic, co-founder of Twitch and founder of Goat Capital, Justin Kan, CEO of Quantstamp Richard Ma, director of operating at CoinList Scott Keto and creator of IPFS and Filecoin, Juan Benet.
Masakazu kikuchi, CEO and Co-Founder of Secured Finance, said:
“Today we are at a critical juncture on the road to democratizing the financial system. Our vision is to become leaders in decentralized finance and to lead this movement by creating an institutional quality P2P cross-chain settlement protocol. The tremendous interest and support from our investors and strategic partners will enable us to grow the Secured Finance team and gain regulatory approval and legal compliance for our platform in all jurisdictions around the world.
Created last year, Secure financing aims to improve decentralized finance or DeFi by providing bank-grade financial products and services for cryptoassets. Using decentralized ledger (DLT) technology, it “builds P2P derivative exchanges to support loans, futures, swaps, and options.”
Due to regulatory reserve liquidity requirements to cover the “high risk weight” of crypto, attractive crypto-financial products are “generally not available from traditional institutions,” the statement noted while adding that by “fully complying with ISDA guidelines and rethinking the peer-to-peer trading and banking life cycle, deployed on the Ethereum blockchain, Secured Finance eliminates the need to take this intermediate risk into account .
Secured Finance smart contracts “manage collateral autonomously, so users can trade loans and swaps without worrying about counterparty risk”.
Rich Rosenblum, president and co-founder of GSR Markets, said that since 2009, most developed economies “are operating at record interest rates”.
He further noted:
“In the realm of digital assets, rates are in double or even triple digits, which opens up many valuable investment opportunities, especially in fixed income securities. Secured Finance has the right team and the right vision to bring fixed income products to DeFi while solving some of the toughest liquidity issues in the space.
Fady Yacoub, co-founder and managing partner of HOF Capital, noted that by introducing fixed rate and yield curve lending structures into the DeFi ecosystem, Secured Finance “will enable traditional financial institutions to sell products linked to the crypto, unlocking hundreds of billions of dollars in additional annual transaction volume for DeFi instruments.
Sean Lippel, Partner and Head of Digital Assets at FinTech Collective, said:
“The lack of a yield curve in DeFi results in extremely variable utilization rates, resulting in a lack of predictability and forecasting for participants in the DeFi ecosystem. We believe Secured Finance is building a new financial primitive that will drive innovation around crypto interest rate swaps, futures and derivatives. We are delighted to support such a strong team in Asia, combining their DeFi philosophy with decades of experience in institutional structured finance.
Unica Yin, Director at Huobi Ventures, said:
“Secured Finance is one of the few teams with in-depth knowledge of both financial products and the on-chain market. We have been in close communication with the team for over six months and have witnessed their exceptional R&D and execution capabilities. We believe Secured Finance will become an indispensable infrastructure within the Filecoin ecosystem. “
Before this recent round table, Secured Finance financed itself through its active participation in the Filecoin Launchpad Accelerator, powered by Tachyon.
Providing funding, advice and support to startups that create open, interoperable and programmable tools, infrastructures and applications for the distributed web, the program has been “essential in the development of Secured Finance from a hackathon project to a mature company ready for investors. ”
Colin Evran, Ecosystem Manager at Protocol Labs, added:
“Secured Finance is a shining example of the power of the Filecoin Launchpad accelerator to transform promising early stage projects into high growth companies poised to have a huge impact in traditional and Web3 markets. Given the success of companies such as Secured Finance, we are delighted that Launchpad received a record number of applications for the second iteration of the program.