San Francisco-based asset management startup Superstate announced the successful closure of a $14 million Series A funding round. The company, renowned for its SEC filing in June proposing a short-term government bond fund with blockchain-based ownership records, intends to use the capital infusion to expand its team, introduce private funds for institutional investors, and establish compliant tokenized investment products.
Led by CoinFund and Distributed Global, the funding round also attracted significant investments from Breyer Capital, Galaxy, Arrington Capital, Road Capital, and Modular Capital, among others. Superstate, guided by Compound's founder Robert Leshner, aims to enable U.S. investors to access traditional assets through on-chain investment products, combining speed and advantages of tokenization with real-time compliance.
The company's initial filing with the SEC detailed plans for an "ultra-short duration government securities fund" primarily investing in U.S. Treasury securities and government agency securities. Superstate intends to document certain fund shares on blockchains, initially Ethereum, while partnering with traditional financial services organizations for ownership documentation.
While Superstate refrains from predicting the launch timeline for its government bond fund, it plans to expand its team, primarily focusing on engineering roles, over the next 12-18 months. CoinFund's CEO Jake Brukhman lauded Superstate's approach, citing its potential to bridge compliant financial products with the innovative aspects of DeFi for traditional finance.