Compound Labs founders developing regulated financial products for the blockchain
Superstate, a company built by the founders of Compound Labs, has just secured $4 million in equity funding to bring regulated financial products to blockchain networks. Investors participating in the round include ParaFi Capital, 1kx, Cumberland Ventures, Coinfund and Distributed Global. One of the first products that Superstate plans to bring is a short-term government bond fund that can be held in a cryptocurrency wallet or by a crypto custodian. Superstate filed a draft prospectus with the US Securities and Exchange Commission for the product on Monday. The fund will enable shareholders to record that they own a government bond fund on the Ethereum blockchain. “We are creating a new fund that has its own prospectus, which then shares of that fund can be held in blockchain wallets,” Robert Leshner, the founder of Compound Labs, told Blockworks. Holding bond funds on a crypto wallet will primarily benefit crypto-native hedge funds and venture funds, he said. “If you’re se...