Former Coinbase executives who founded Trident Digital Group have raised $8 Million in the seed round which is the first official equity funding stage. They will utilize the amount for developing their crypto lending business.
Anthony DeMartino is Trident’s CEO who previously worked as the head of Coinbase Risk Strategies which focuses on DeFi and derivatives trading. The launch of Trident comes after a dark period in the crypto market. The year 2022 was disastrous for crypto lenders.
No less than half a dozen borrowers and lenders collapsed into bankruptcy last year.
The list includes some names like hedge fund Three Arrows Capital to lenders like BlockFi Celsius Network and Voyager Digital. The reputation of the crypto lending companies has gone bad.
With the fresh money, Trident hopes to restore some of the liquidity that was drained out from the market. The seed round was co-led by CMT Digital, White Star Capital. New Form with permit ventures also participated.
The amount will be utilized in the development related to services. The startup will use the fund to develop the risk management service which will enhance reliability.
About Trident Digital Group and its Founders
Trident Digital Group is a startup which was launched with the aim to introduce a secure yield product that sets itself apart from other alternatives by linking yields to the risk free rate. This confirms that crypto treasuries physically back any deposit. It is basically a crypto lending business.
Trident’s CEO stated that default risk was largely ignored in the last cycle, which is the main reason preventing lenders from re-entering the market. Trident Digital will offer proper risk management and will maintain a balance between security and capital efficiency.
DeMartino is a former banker with UBS, Barclays, and HSBC who moved into crypto in 2021 when he joined Coinbase. He was CEO of Matrixport U.S. business for year.
Toby Norfolk Thompson who is Trident’s Chief Commercial Officer was Chief Investment Officer at Coinbase. He also served as CIO at Matrixport.
Trident announced that it will launch with the yield product that ties yields to the risk-free rate while ensuring treasuries physically back any deposits. The startup hopes to win deposits from Fintech firms, crypto native treasuries, and venture capitalists.
Summary
Former Coinbase executives Anthony DeMartino and Toby Norfolk who are the founders of the startup Trident have raised $8 Million in a seed feed funding round. They will use this amount in further development of their startups and the services provided.
Nancy J. Allen is a crypto enthusiast and believes that cryptocurrencies inspire people to be their own banks and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning.
Source: https://www.thecoinrepublic.com/2023/09/16/former-coinbase-executives-raise-8-million-in-seed-round/