Compound founder forms ‘superstate’ to create Ethereum bond fund for record-keeping.

Robert Leshner, CEO of Compound, a decentralized lender, has filed documents with U.S. securities regulators for a new company called “Superstate.” The company aims to create a government bond fund that will utilize the Ethereum blockchain as a secondary record-keeping tool.

As stated in a filing with the Securities and Exchange Commission on June 26th, Superstate’s fund will invest in “ultra-short duration government securities,” which includes U.S. Treasury bonds, government agency securities, and other government-backed instruments.

The fund will rely on a traditional Wall Street “transfer agent” to maintain ownership records of the fund holders, according to the filing.

However, the filing also mentions that “ownership of certain fund shares will also be recorded on one or more blockchains, initially the Ethereum blockchain, in the form of the Secondary Blockchain Records.”

According to the filing, the advisor believes that integrating a blockchain-based record-keeping system could potentially improve operational efficiencies and enhance the shareholder experience without compromising the quality of services provided by the fund’s transfer agent. In the future, the fund’s shares may also be available for peer-to-peer transactions on a blockchain by utilizing the Secondary Blockchain Records.

In such cases, the transfer agent’s official record will be regularly reconciled and matched with the Secondary Blockchain Records to facilitate peer-to-peer transfers of shares, as mentioned in the filing.

In a separate filing on June 16th, Superstate Inc. announced plans to sell up to $3.75 million of securities classified as “option, warrant or other right to acquire another security.”

Leshner tweeted on Wednesday that this is just the initial step towards upgrading financial markets. He further stated that eventually, trillions of offline assets will be migrated onto blockchains, and Superstate aims to facilitate that migration.

Edited by Stephen Alpher.

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