DeFi Pioneer Leshner Launches 'Superstate' to Invest in Government Securities

DeFi Pioneer Leshner Launches ‘Superstate’ to Invest in Government Securities

Updated: 29 June 2023

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Robert Leshner, the founder of DeFi lending protocol Compound, has established a new company aimed at investing in short-term government securities.

In a recent filing with the U.S. Securities and Exchange Commission (SEC), Leshner unveiled the name of the fund as Superstate.

It will allocate 95% of its assets to U.S. Treasuries, government securities, collateralized repurchase agreements, and similar instruments.

The filing, made on June 26 with the SEC, shows that Superstate’s fund will invest in ‘ultra-short duration government securities’, including U.S. Treasury bonds, government agency securities, and other government-backed instruments.

While the fund will not directly invest in blockchain-based assets such as tokens and cryptocurrencies, it will adopt the blockchain as a record-keeping tool to monitor the shared ownership of specific stakeholders.

Blockchain to hold trillions of assets

According to the filing, the integration of blockchain into the record-keeping system is anticipated to enhance operational efficiency and improve the shareholder experience without compromising the quality of services provided by the fund’s transfer agent.

In the future, these shares may become available for peer-to-peer transactions, including purchases, sales, or transfers between shareholders, facilitated by a blockchain exchange utilizing Secondary Blockchain Data.

Leshner expressed his vision for the future, stating: “The first limiting issue to DeFi is that crypto-native belongings are the one interoperable belongings. However finally, lots of trillions of ‘offline’ belongings will discover their means onto blockchains. We plan to facilitate that migration,” on Twitter.

The primary limiting factor to DeFi is that crypto-native assets are the only interoperable assets.

But eventually, hundreds of trillions of 'offline' assets will find their way onto blockchains.

We plan to facilitate that migration.

— Robert Leshner (@rleshner) June 28, 2023

In a separate filing on June 16, Superstate Inc. disclosed plans to sell up to $3.75 million of securities falling under the category of “option, warrant, or other right to acquire another security.”

Market watchers must check the impact of Leshner’s words on the prices of the best DeFi crypto assets.