Crypto-savvy broker-dealer Oasis Pro raised $27 million in its push to launch a digital securities alternative trading system (ATS) that decentralized finance (DeFi) platforms can plug into.
LedgerPrime, Redwood Trust, John Wu’s Avalanche-focused Blizzard fund and other venture backers joined the Series A, CEO Pat LaVecchia, a former MakerDAO adviser, told CoinDesk.
He described the strategic backers as “important” in Oasis’ bid to bridge crypto infrastructure with traditional capital markets.
Oasis Pro Markets LLC, the ATS, wants to support everything from the issuance to secondary trading of all forms of digital securities, the company said. It also lets subscribers take the unusual step of paying in crypto for their digital securities, which are traditional investment assets (like shares in a company) that trade as tokens atop blockchain tech.
Oasis is in the “early stages” of integrating its ATS directly with DeFi applications, LaVecchia told CoinDesk. He said automated market makers (AMMs), staking and yield farming can provide investor upside, and also help DeFi dollars gain access to securities.
LaVecchia offered MakerDAO as an example.
“The MakerDAO collateralization platform could fund an issuer with a collateralized note. Then if it meets proper regulatory security requirements, that note could trade on an ATS such as Oasis Pro. So DeFi funding into a security that can trade on an ATS for the issuer,” he said in a text.
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Such close integrations of DeFi and traditional finance (TradFi) require regulatory approval. LaVecchia said Oasis isn’t there yet.
“I believe we are unique and we have the registration for digital cash (stablecoins, CBDCs, etc.) for digital securities transactions which to date we understand no other group has secured,” LaVecchia said.