- Total stablecoin market (total amount in circulation) currently stands at over $175bn1 as new applications and services built on ‘digital dollars’ like USDC gain adoption from mainstream ‘non-crypto’ consumers
- OpenTrade’s platform allows neobanks, payment companies, and other FinTechs building this new wave of stablecoin apps to seamlessly generate stable returns (3-6% APR) backed by high quality financial assets
- The round was led by AlbionVC, with a16z Crypto and CMCC Global returning as investors
- The round follows a string of high-profile partnerships for OpenTrade, including with digital asset exchange giant WOO X and Y-Combinator backed Colombian neobank Littio
LONDON — [November 25th, 2024] — OpenTrade, a platform for real world asset-backed stablecoin yield products, has successfully raised a $4 million seed extension round led by AlbionVC. Existing investors a16z Crypto and CMCC Global also participated in the round.
Unlike other cryptocurrencies which notably fluctuate in value based on market behaviours, stablecoins, like USDC, are pegged 1 to 1 to a fiat currency like the US dollar, and provide a reliable medium of exchange and store of value. Stablecoins work seamlessly across applications and platforms around the globe, using blockchain infrastructure that’s faster, less expensive, and more accessible than legacy rails. The stablecoin market is booming with over $175bn currently in circulation, and transaction volumes of $11.1tn2 which now rival that of Visa and MasterCard. Of particular note is the rise in adoption in regions such as Latin America where 33% of all individuals have now used a stablecoin for some form of everyday purchase.
Launched in late 2022 and headquartered in London, OpenTrade allows companies building the next generation of stablecoin-based financial services to extend the value of their digital dollar balances and products by adding the option to earn interest, fully backed by high quality ‘real world’ financial assets including but not limited to U.S. Treasury Bills, without the complexity and cost of moving funds back into the legacy banking system.
The OpenTrade platform was purpose-built by industry veterans to allow FinTech companies to easily power stablecoin yield products for their users, which can be completely embedded in existing apps/user journeys and integrated into their systems and back office operations. Funds are fully secured through OpenTrade’s bank-grade legal off-chain asset management structure.
As the demand for stablecoin yield products continues to grow, this funding will help OpenTrade scale its operations to meet the rising demand for its solutions, and secure the additional sales, marketing and implementation team needed to pursue, onboard and support new clients globally. The capital will also be used to further enhance its existing product capabilities, and develop additional offerings including yield products backed by a variety of new asset types.
OpenTrade’s leadership team has a proven track record of success building market leading applications, networks, and platforms across traditional financial services and digital assets. It features decades’ worth of experience from leaders previously working at Barclays, Marco Polo Network, Centre (joint venture between Circle and Coinbase that originally launched and governed USDC), Meta, PWC, and Standard Chartered Bank.
The funding round follows a string of high profile partnerships for OpenTrade, including with global centralised crypto futures and spot trading giant WOO X, and with Columbian neobank Littio. To date OpenTrade’s products have processed over $100m in total transaction volumes for clients like Littio, which have powered stable USD-denominated wealth generation opportunities for over 100,000 end users.
David Sutter, CEO of OpenTrade, commented: “Stablecoins play a critical role in the crypto ecosystem, bridging that gap between digital assets and traditional finance. 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.
“This funding allows us to continue on our growth trajectory, building products for some of the biggest and most important leaders in the space. The caliber and experience of our partners is testament to the solutions we’ve built and the fantastic team we’ve got here at OpenTrade. Onwards and upwards.”
Jay Wilson, Partner at AlbionVC, commented: “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.
“Stablecoin yield products are in high demand right now, but many businesses don’t know where to start in terms of building their own offering. That’s the gap in the market filled by OpenTrade who are building a core piece of infrastructure, offering a seamless and safe solution for partners to build and operate their own leading stablecoin yield products. I’m excited to work closely with David and the team on the next stage of their journey.”
