A new SEC filing, if approved, will see US government bond funds placed on the Ethereum blockchain.
Robert Leshner, CEO of Compound, has submitted a filing to the Securities and Exchange Commission for a new platform, “Superstate.” The new company will create short-term government bonds, which will be backed up on the Ethereum blockchain as its secondary record-keeping layer.
In a Twitter post regarding the fund, Leshner wrote:
“Today, I’m excited to announce the founding of a new company, @superstatefunds. Superstate’s mission is to create regulated financial products that bridge traditional markets and blockchain ecosystems.”
New fund will rely on traditional Wall Street agents
A Coindesk report on the June 26 filing said that the new fund will invest in short-term US government bonds but rely on traditional Wall Street agents for transfers. An earlier filing shows that Superstate Inc. intends to sell as much as $3.75 million in securities described as option and warrant categories.
The report said that ownership of certain shares would be recorded on more than one blockchain. The entity plans to start with Ethereum.
The adviser believes that a blockchain-integrated recordkeeping system may provide operational efficiencies and enhance shareholder experience without negatively impacting the quality of the services provided by the fund’s transfer agent,” according to the filing. “In the future, the fund’s shares may also be available for purchase, sale, or transfer from one shareholder to another shareholder (or potential shareholder) ‘peer-to-peer’ on a blockchain by utilizing Secondary Blockchain Records.”