Superstate, a company focused on managing tokenized RWA assets, has raised $14 million in funding. The funding round was led by CoinFund and Distributed Global, with participation from Arrington Capital, Breyer Capital, CMT Digital, Folius Ventures, Galaxy Digital, HackVC, Modular Capital, Nascent, Road Capital Management, and the XYZ division.

Led by Robert Leshner, the founder of DeFi platform Compound, the startup plans to use the funds to expand its team and create regulated private funds for institutional investors in the US. According to Jake Brukhman, the founder and CEO of CoinFund, Superstate’s approach is capable of bridging the gap between «high-quality financial products that meet regulatory requirements and the huge advantages and innovations that DeFi can offer.»

In June, the startup applied to the SEC to launch an open-end mutual fund based on Ethereum. Analysts at Bernstein estimate that tokenization could cover assets worth $5 trillion in the next five years.