By Niket Nishant March 30 (Reuters) - German startup Midas has raised $50 million in an early-stage funding round led by venture capital firms RRE and Creandum, with backing from investors including
German Tokenisation Startup Midas Raises $50 Million in Early Funding Round
Midas Secures Major Investment to Advance Tokenisation in Finance
By Niket Nishant
March 30 (Reuters) - German startup Midas has raised $50 million in an early-stage funding round led by venture capital firms RRE and Creandum, with backing from investors including Coinbase Ventures and Franklin Templeton, it said on Monday.
About Midas and Tokenisation
Founded in 2024, the company turns investment products into digital tokens that can be traded on blockchain networks. The process, known as tokenisation, has drawn growing attention in recent months with proponents seeing it as a way to modernise capital markets by making financial products more transparent and easier to trade.
Industry Challenges and Competition
However, the still-nascent industry faces uncertainty around regulations, which could hamper broader adoption, as well as increased competition as financial heavyweights enter the space.
Funding Details and Investor Participation
Other investors in Midas's funding round included Framework Ventures, HV Capital, Ledger Cathay, M1 Capital, Anchorage Digital, FJ Labs, North Island Ventures, No Limit Holdings and GSR.
The company did not disclose its latest valuation.
Comparison to Typical Funding Rounds
The financing exceeded the amount startups typically haul in at this stage. According to data from research firm PitchBook, the median size for Series A and Series B funding rounds in Europe stood at 14.4 million euros ($16.58 million) last year.
Market Interest and Future Plans
Growing Institutional Interest
"A significant share of our early adopters are crypto-native, but we are seeing growing interest from larger institutions that want to work with tokenised assets," Midas co-founder and CEO Dennis Dinkelmeyer told Reuters.
Expansion and Regulatory Strategy
U.S. Market Entry Plans
The company plans to invest proceeds from the round into its core infrastructure. While Midas does not yet operate in the United States, Dinkelmeyer said it was on the "roadmap".
Regulatory Compliance Efforts
"We're actively investing in the legal and regulatory framework for U.S. entry so that when we do choose to expand there, we can do so in a way that's durable, scalable and fully aligned with the local regulatory framework," he added.
(1 euro = $1.1511)
(Reporting by Niket Nishant in Bengaluru; Editing by Janane Venkatraman)
