Key Takeaways
- Multiliquid’s total funding reached $8 million after a seed round led by Polychain.
- Circle Ventures joined five other investors backing Multiliquid’s institutional liquidity platform.
- Multiliquid aims to make exchanges between tokenized investments and stablecoins available around the clock.
Multiliquid Reaches $8 Million in Funding as Polychain Backs Tokenized Asset Liquidity
Tokenized assets promise around-the-clock finance, but there’s a catch. Even when traditional finance (TradFi) investments live on a blockchain, turning them into usable cash can still take days. Multiliquid wants to eliminate that waiting period, and investors are putting money behind the idea.
On Thursday, Oct. 15, Uniform Labs announced that its institutional liquidity platform had closed a seed round led by Polychain, bringing total funding to $8 million, with participation from Circle Ventures and five other investment firms.
Polychain Leads Funding for Institutional Liquidity
The financing attracted Strobe Ventures, CMT Digital, Metalayer Ventures, Generative Ventures, and Circle Ventures alongside lead investor Polychain. The company did not disclose the seed round’s individual size. Multiliquid is designed to let institutions exchange tokenized financial assets for stablecoins through a single blockchain transaction.
This is in contrast to the current method of navigating conventional TradFi redemption processes that can stretch across several business days. The protocol supports tokenized funds from asset managers including Wellington Management, Vaneck, Janus Henderson and Fasanara, alongside stablecoins such as USDC.
Tokenized Assets Meet a Familiar Wall Street Problem
The underlying problem isn’t necessarily creating digital versions of traditional investments. It’s making those investments liquid enough to move between markets without tying up capital. The distinction has become increasingly important as institutions explore tokenized Treasuries, money market funds and private credit.
“Tokenization only matters if the assets are actually liquid,” Multiliquid founder and CEO Will Beeson remarked.
Stablecoin Rules Add Another Dimension
The GENIUS Act prohibits payment stablecoin issuers from paying holders interest or yield directly, creating a distinction between transactional stablecoins and yield-bearing tokenized investments. Multiliquid aims to bridge those two categories, allowing institutions to shift capital between investments and stablecoins without waiting for conventional settlement windows.
Polychain founder Olaf Carlson-Wee described liquidity as the remaining bottleneck for tokenized assets. The larger question is whether blockchain-based settlement can deliver the liquidity institutions expect from traditional capital markets, rather than simply digitizing assets that remain difficult to redeem.