City Protocol disclosed that the company had completed seed wheels and Pre-A financing totalling $11 million to expand the structured product infrastructure of the chain. Participants included Dragonfly, Jump Cripto, CMT Digital, Stratified Capital, Adaverse and Mirana, with the Venzo platform on line with four strategic vaults.
Vénzo's lockdown is about $30 million.
The information disclosed with the financing indicates that the current total warehouse of Venzo is approximately $30 million. However, the earlier version of the bulletin had been written at $4.0 million, followed by a calibration.
Venzo currently provides a 4-type strategic bank covering quantitative hedges, cross-exchange arbitrage, private loans and chain gains. City Protocol indicated that in the past such strategies had been aimed primarily at institutional and professional investors.
Three-tier infrastructure support for distribution
City Protocol divides its system into three layers, corresponding to monetization, treasury, and distribution and operation. The monetization layer is responsible for encapsulating strategies or asset classes as chain-distributable products, and the vault layer handles foreclosure, enforcement limits, bookkeeping and liquidation.
The distribution and operating layers cover distribution records, netting, methodological rules, rebalancing, reporting, requisitioning and foreclosure. According to the company, this splitting approach allows for re-use of the same bottom-up facility by regulators and strategy providers, without the need to develop a separate technology warehouse for each new product.
In terms of security design, the company indicated that different operating privileges could be assigned to different players and that critical operations could require additional signatures. Costs can also be written directly into smart contracts and displayed before users interact, while hold-ups and implementation records are kept on the chain.
Plan to launch the theme group in the wallet
In addition to hosting the policy vault, City Protocol is about to launch another type of Venzo product, the theme group that runs in the user ' s wallet. User assets remain in their wallets, automated procedures are charged with buying and rebalancing, and the relevant portfolio rules and warehouse schedules are publicly disclosed.
The company plans to start with two types of thematic clusters: one based on warehouse construction as disclosed by prominent investors, institutions or public officials; and the other on the construction of warehouses around specific industries, with alternative topics including space exploration, metals and electric vehicles.
Regulatory issues remain to be observed
The article mentions that the United States Securities and Exchange Commission member Hester Peirce had indicated in July this year that the applicability of the Federal Securities Act to the structure of some encrypted vaults depended on its specific design and management. This means that while the chain of regulated products expands, the structure and regulatory authority of the product remain under regulatory concern.
Additional information:It is also mentioned that HSBC completed its first private launch of a monetized structural product for institutional investors in Hong Kong in July this year, indicating that traditional financial institutions are testing similar infrastructure.