Ostium Labs, a pioneer in real-world asset (RWA) trading solutions, has successfully raised $3.5 million in a funding round co-led by General Catalyst and LocalGlobe VC, with notable participation from SIG, Alliance DAO, and Balaji Srinivasan.
This funding injection will empower Ostium Labs to further develop a perpetual contract protocol specifically tailored for Real World Assets.
Ostium Labs is a cryptocurrency startup that aims to develop a protocol for digitized commodities perpetual swaps. It is the first decentralized perpetual exchange for commodities and forex, and it is engineered for real-world assets.
We're building the first decentralized perpetuals exchange for Real World Assets ⬇️https://t.co/X9ffyom58o
— Ostium Labs (@OstiumLabs) October 6, 2023
Ostium Labs aims to develop a protocol for digitized commodities perpetual swaps, which will allow traders to speculate on the price of commodities without having to own the underlying asset.
The timing of Ostium Labs’ launch is significant, as it coincides with a critical juncture in the global financial markets. Since 2020, financial markets have grappled with unprecedented challenges, including rapid geopolitical changes, supply chain disruptions, and an expansion of the monetary base.
Demand for on-chain real-world asset trading
This dramatic shift has had a cascading effect on various asset classes, leading to increased market volatility and a breakdown in traditional asset relationships. In response to these market dynamics, investors are diversifying their portfolios into alternative assets, both on-chain and off-chain. On-chain, the demand for tokenized treasuries and equities has surged exponentially this year.
For Ostium, instead of creating an on-chain financial solution that focuses on long-term holders rather than traders, leaving a significant gap in the market, it is catering to the evolving needs of DeFi users and traders seeking on-chain exposure to financial assets beyond cryptocurrencies.
Ostium Labs noted that inaugural solutions will be centered on stablecoin settlement, low-latency oracle-based pricing, minimal liquidity provider exposure, and a disintermediated and unbiased trading environment.
“We’re excited to be bringing perps for oil, gold, and more on-chain,” Ostium said. It also welcomes traders to explore its perpetual trading platform for commodities, foreign exchange, and more on-chain by signing up for the testnet.