OpenTrade Raises $17M To Scale Stablecoin Yield

OpenTrade has raised $17M in a strategic round.

OpenTrade has officially announced their latest round of capital to scale their core stablecoin yield infrastructure solutions to fintechs and issuers. This was led by Mercury Fund and Notion Capital, and key participants included A16z Crypto among others.

In a press release, CEO and Co-founder David Sutter expressed:

"As we grew, it became clear that our infrastructure could also serve non-custodial platforms, treasuries, and asset issuers that all need the same thing: a safe, scalable way to connect stablecoins to diversified yield strategies."

OpenTrade's yield service operates slightly different. The main focus is taking in top stablecoins including USDT and USDC, but relying on a delta-neutral strategy involving the native SOL token of Solana.

The team seems to hedge SOL with perpetual futures to deal with any large fluctuations in price action. The provider for this infrastructure is Figment, which primarily works with Ethereum and Solana.

Other strategies in the industry involve more traditional "Earn" like programs, such as Coinbase, Kraken and Fireblocks where users deposit a balance in stablecoins and yield is generated via third-party vault curators like Morpho.

Stablecoin yield as a service is an area that is rapidly evolving. Unlike in pure DeFi, enterprise and institutional clients can require more custom curated strategies for their business treasury holdings to generate yield.