SINGAPORE-based fintech startup DEXTF, has secured US$460,000 in an oversubscribed seed funding round led by LuneX Ventures and SGInnovate, it said on Friday.
DEXTF - which stands for decentralised traded funds - is a platform that bridges investors with asset managers, eliminating the need for intermediaries. It also enables the delegation of investment decisions, without transferring the ownership of assets, the company said in a media release.
Kenrick Drijkoningen, founding partner of LuneX Ventures, commented that a non-custodial fund management protocol gives power back to asset owners, and eliminates the need for expensive intermediaries.
For LuneX Ventures, the blockchain-focused arm of Singapore's Golden Gate Ventures, this investment is the third deal it concluded together with SGInnovate, since its appointment to the latter's panel of co-investors under the Startup SG Equity scheme for deep tech startups.
Also participating in the funding round were partners at London-based hedge fund CDAM, along with other undisclosed private investors.
Supported by its strategic partner Mindful Wealth, DEXTF has been working on the completion of its proof of concept, and will use the new capital to launch the product and further develop its technology, the company said.
Mario Aquino, co-founder and president of DEXTF added: "Traditional asset management is an industry experiencing a period of significant change, driven by the rise of ETFs (exchange traded funds) and passive investments, the search for yield and diversification in a low-interest rate environment, and 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 tap 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."
He also noted that by combining blockchain technology with the arbitrage mechanism, a further layer of security may be added to digital assets, providing accountability and transparency.
Added Heng Soon Pang, head of venture building at SGInnovate: "Investing in digital assets remains an area of sustained interest, yet many see current investment infrastructure as inadequate for investors and fund managers.
"Leveraging the blockchain technology, the DEXTF protocol seeks to address this gap and democratise digital asset management in a secure and scalable way. We are excited to be a co-investor in DEXTF's seed funding round, to help scale their platform globally."