UK’s OpenTrade Raises $7M to Expand Stablecoin Yield Access in Inflation-Hit Markets
OpenTrade, a London-based fintech startup, has secured $7 million in a strategic funding round, boosting its total funding to $11 million in just six months. This significant investment underscores investor confidence in OpenTrade’s innovative approach to providing yield-bearing stablecoins in emerging markets. The round was led by Notion Capital and Mercury Fund, with participation from prominent investors including a16z crypto, AlbionVC, and CMCC Global.
OpenTrade operates a “yield-as-a-service” platform designed to empower fintech apps, exchanges, and neobanks. This platform allows these clients to offer users attractive interest rates on USD and EUR holdings, a crucial service in countries with unstable economies and limited access to traditional banking solutions. Partners like Criptan in Spain and Littio in Colombia are already leveraging OpenTrade’s technology to provide users with interest rates significantly higher than those offered by local banks. For example, while Colombian banks offer less than 0.4% APR on dollar deposits, Littio users can earn up to 6% through OpenTrade’s platform.
This substantial yield differential is particularly impactful in regions like Argentina and Colombia, where dollar bank accounts are scarce and traditional savings accounts offer negligible returns. OpenTrade’s platform enables users to earn meaningful returns directly from their smartphones, facilitating financial inclusion and providing access to previously unavailable financial opportunities.
Currently managing $47 million in assets and processing close to $200 million in volume with 20% month-over-month growth, OpenTrade is rapidly expanding its reach and impact. The newly acquired capital will be instrumental in scaling operations and enhancing the company’s technological infrastructure. Investors see OpenTrade as a key player in building the financial infrastructure of the future, recognizing the immense potential of the $240 billion stablecoin market and the crucial role OpenTrade’s platform plays in supporting this burgeoning sector. Mercury Fund’s Samantha Lewis highlighted OpenTrade’s role in building core financial infrastructure for the next generation of fintech, while Notion Capital’s Itxaso del Palacio emphasized the platform’s significance within the rapidly growing stablecoin market.
