Secured Finance, a startup that focused on developing platforms for the cryptocurrency loans and derivatives market, has successfully raised $4 million in a seed funding round and raised more than double its initial target.
“Today, we stand at a critical juncture in the journey to democratizing the finance system. Our vision is to become leaders in decentralized finance and to spearhead this movement through the creation of an institutional-grade P2P cross-chain settlement protocol. The tremendous interest and backing of our investors and strategic partners will enable us to grow the Secured Finance team and secure regulatory approval and legal compliance for our platform across jurisdictions globally,” Masakazu Kikuchi, CEO and Co-Founder at Secured Finance commented.
The main investors of the fund include the leading trading cryptocurrency company GSR Markets, Protocol Labs, a laboratory researching and developing open-source, the venture capital firm FinTech Collective, the global technology investment firm HOF Capita, and the strategic investment firm Huobi Ventures.
In addition, other many individual investors also participated in such as individual investors Chief Operating Officer at CoinList Scott Keto, and Creator of IPFS and Filecoin, Juan Benet, CEO of Quantstamp Richard Ma, Twitch Co-Founder, and Founder of Goat Capital, Justin Kan, South African entrepreneur and CEO of Civic, Vinny Lingham, and Board Member at Nomura Holding America James DeNaut.
Founded in 2020, Secured Finance offers investment-bank-grade financial products and services for cryptocurrencies and digital assets. The firm builds P2P derivative exchanges to cater to loans, forwards, swaps, and options by using decentralized ledger technology (DLT).
The regulatory requirements for reserve liquidity to cover the crypto’s high-risk weight causes attractive crypto-financial products to be not typically available via traditional institutions.
Secured Finance can solve and remove the need to account for such middleman risk by complying with ISDA guidelines and redesigning trade lifecycle and banking operations in a peer-to-peer manner, which are deployed on the Ethereum blockchain.
The platform’s smart contracts manage collateral autonomously. Therefore, it helps users to trade loans and swaps without worrying about counterparty risk.