Trident Digital Group, a recently established startup founded by ex-executives from Coinbase, has secured $8 million in funding for its innovative approach to crypto lending.
This launch comes in the wake of a tumultuous period in the crypto lending sector. Last year, several lenders and borrowers, including prominent names like Three Arrows Capital, BlockFi, Celsius Network, and Voyager Digital, faced bankruptcy.
To kickstart their venture, Trident successfully raised $8 million in a seed funding round. This round was jointly led by White Star Capital and New Form. Additionally, there was participation from CMT Digital, Joint Effects, and Permit Ventures.
Trident: A New Approach to Crypto Lending
Anthony DeMartino, the CEO of Trident, emphasized the critical role of counterparty risk in the current lending landscape. This aspect had been overlooked in the previous cycle. He expressed confidence that Trident’s solution would prioritize effective risk management. It aims to achieve a delicate balance between security and capital efficiency.
Anthony DeMartino transitioned into the crypto sector in 2021 after a banking career with UBS, Barclays, and HSBC. Initially, he joined Coinbase as the Head of Coinbase Risk Strategies, specializing in DeFi and derivatives trading. Later, he took on the role of CEO of Matrixport’s U.S. division before stepping down in July.
In addition, DeMartino’s colleagues at Trident have similar professional backgrounds. For instance, Toby Norfolk-Thompson, the Chief Commercial Officer at Trident, previously collaborated with DeMartino at Coinbase.
He served as the Chief Investment Officer of Coinbase Risk Strategies. Furthermore, they worked together at Matrixport. In this venture, Norfolk-Thompson held the role of Chief Investment Officer in both the U.S. and UK.
Trident’s initial offering will be a yield product that links yields to the risk-free rate, ensuring that deposits are physically backed by treasuries, according to the recent announcement. The startup aims to attract deposits from fintech companies, crypto-native treasuries, and venture capitalists.
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