Fission raises $10M Series A led by Pantera for tokenized fund liquidity

Fission, a startup building liquidity for tokenized investment funds, has closed a $10 million Series A round led by Pantera Capital. The company did not disclose other participants.

The funding comes as tokenized funds—traditional vehicles like private equity or venture capital portfolios represented as blockchain-based tokens—gain traction among asset managers. Fission’s pitch is that these tokens need secondary markets to attract investors who want exit options before the underlying funds mature, typically in 7 to 10 years. The startup operates a trading platform that matches buyers and sellers, with Pantera’s backing suggesting institutional interest in the model.

Tokenized funds have seen steady adoption, but liquidity remains a bottleneck. While some asset managers have launched tokenized versions of their funds, secondary trading volumes are often limited, and many tokens trade at discounts to net asset value. Fission’s bet is that a dedicated liquidity layer can narrow that gap, though the company has not shared data on trading volumes or assets under management.

Pantera’s involvement aligns with its broader push into tokenized assets. The firm has invested in other infrastructure plays in the space, reflecting a growing trend of institutional capital flowing into the sector. Fission’s funding round is smaller than some recent deals in adjacent markets, but the sector’s fragmentation means even niche players can secure backing.

What’s next is whether Fission can attract enough fund managers and investors to its platform to create meaningful liquidity. If it fails, the round may look like a bet on a still-unproven market. If it succeeds, it could help define how tokenized funds trade in practice.

Sources: kucoin.com