Compound Labs founders developing regulated financial products for the blockchain

Superstate’s first product will be an on-chain government bond that you can hold in your crypto wallet

article-image

BigTunaOnline/Shutterstock modified by Blockworks

share

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 set up to trade crypto assets, you’re probably not set up with traditional brokerage accounts,” Leshner said. 

With yields in DeFi now often lower than in traditional finance markets, holding government bonds in your crypto wallet enables you to use all existing systems that these investors already have in place.

“This is an opportunity to hold a TradFi fund in your crypto custody process,” he said. “So you as a firm can hold a record of your ownership of this mutual fund alongside stablecoins or other crypto assets in the same place in the same platform.”

Government bond funds in crypto wallets will only be available to US customers and not available to any offshore investors, Lensher notes. 

Although Superstate will not be the first company to bring institutional-grade products onto the blockchain, Jake Brukhman, the founder and CEO of CoinFund, told Blockworks blockchain technology will have to converge with traditional technologies and regulators and governments to “sensibly come to market.”

“The founder, the strategy and the approach are just world-class, so we’re just very excited about it,” Brukhman said.


Start your day with top crypto insights from David Canellis and Katherine Ross. Subscribe to the Empire newsletter.

Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. Subscribe to the Forward Guidance newsletter.

Get alpha directly in your inbox with the 0xResearch newsletter — market highlights, charts, degen trade ideas, governance updates, and more.

The Lightspeed newsletter is all things Solana, in your inbox, every day. Subscribe to daily Solana news from Jack Kubinec and Jeff Albus.

Tags

Upcoming Events

Javits Center North | 445 11th Ave

Tues - Thurs, March 18 - 20, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

recent research

Flashnote Template (6).png

Research

Trading of the President's TRUMP memecoin sent the market capitalization to over $15B, resulting in all-time highs for Solana’s Real Economic Value, DEX volumes, and stablecoin supply. This event further validates Solana as the venue for high-throughput onchain activity, with Solana DEXs and DeFi applications as primary beneficiaries, while also signaling to further experimentation, utilization, and adoption of memecoins as legitimate financial instruments for speculation, crowdfunding, or capital formation. President Trump’s continued willingness to experiment in crypto reaffirms a highly-favorable political and regulatory climate for the industry.

article-image

CEO Kris Marszalek touted the new platform’s “deep liquidity [and] stable banking rails” among other notable features

article-image

Circle acquired the company responsible for creating the largest tokenized money market fund

article-image

During his first 12 hours in office, Donald Trump issued a flurry of expected and symbolic presidential actions

article-image

Two pools are live on InfinityPools with sUSDe and wstETH collateral

Key figures including Vitalik Buterin struggle to communicate the network’s core mission in an era of memecoin-minimized attention spans

article-image

World Liberty Financial has been busy buying crypto ahead of its launch