Decentralized Traded Funds (DEXTF) today announced a US$460,000 seed funding round led by LuneX Ventures and SGInnovate, with the participation of the partners at London-based hedge fund CDAM and undisclosed private investors.
DEXTF is a Singapore-based startup that aims to democratise asset management by bridging investors peer-to-peer with asset managers, eliminating the need for intermediaries.
Claiming to be an oversubscribed round, the startup plans to use the funding to work on the completion of its proof of concept and will use the new capital to launch the product and further develop its technology.
In addition to bridging the connection between investors and asset managers, DEXTF also enables fully decentralised custody, allowing the delegation of investment decisions without transferring ownership of the assets.
In a statement, Mario Aquino, Co-founder and President of DEXTF, dubbed traditional asset management as an industry that is experiencing “a period of significant change.”
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This transition is driven by the rise of ETFs and rise of ETFs and passive investments, the search for yield and diversification in a low-interest-rate environment as well as the increasing cost of legacy infrastructure with multiple intermediary layers.
“With DEXTF we are building a new asset management paradigm. One that not only helps traditional asset managers dramatically lower costs and taps into new investment asset classes, but also significantly lowers barriers to entry and democratises the allocation of resources to enable a new generation of digital asset managers,” Aquino said.
“Currently the bearer nature and immutability of digital assets means they cannot be safely invested in with traditional methods, especially when the investment decisions are delegated to third parties. In these cases, the custody of the assets is exposed to risks which can be best addressed by a blockchain solution. By combining blockchain technology with the arbitrage mechanism, a further layer of security is being added providing accountability and transparency,” he added.
DEXTF named Mindful Wealth as a strategic partner.
For LuneX Ventures, the blockchain-focused arm of Golden Gate Ventures, this lead investment is the third deal it concluded together with SGInnovate since its appointment to SGInnovate’s panel of co-investors under the Startup SG Equity scheme for deep tech startups.
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Image Credit: DEXTF
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