A decentralized synthetic asset issuance protocol built on Substrate says it has secured $1.64 million from prominent blockchain venture capitalists.

Shadows Network, a trading platform based on Polkadot, is wrapping up its strategic financing round — and says it is ready to step out from the shadows and into the DeFi world.

The company’s goal is to democratize finance and enable investors to gain exposure to assets — including stocks, commodities, indices and more. By enabling anyone to trade on-chain assets from anywhere, the platform describes itself as “the backbone of Web 3.0 as a store of value.”

Highlighting the strategic investment partnerships it has struck up, Shadows Network says AU21 Capital, JRR Crypto, Blocksync Ventures, Master Ventures and Cryptomeria Capital are among the high-profile investors set to offer expertise and guidance as launch nears.

Shadows Network CEO Iror Chen said: “We are so thrilled to have these investors all come on board. They are all professional, influential, and insightful. With their investment and back-up, Shadows Network will be a huge hit in the DeFi space.”

According to the company, all of its partners are determined to foster long-term relationships that will stand them in good stead as they look to the future — a stark contrast to others who seek a quick return on their investment and a speedy exit.

A spotlight on Shadows investors

Among the investors backing Shadows is AU21 Capital, which has backed top-tier exchanges including Binance and Huobi in the past. According to the company, it was also one of the first investors in Polkadot — and it serves as a member of the Polkadot Venture Network as well as the Polkadot DeFi Alliance.

Joining them is JRR Crypto, a fintech group that focuses on disruptive innovations relating to the traditional financial sector. The venture capital firm says that it has more than $2 billion in assets under management. Headquartered in Switzerland, it also had offices in Shanghai, Singapore, Hong Kong, Beijing and Taipei.

Shadows Network also pointed to Blocksync Ventures’ philosophy when it enters into investments. On its website, the firm said: “Our philosophy is successful because we invest in relationships, not deals. Deals are simply transactions. We build exceptional relationships with companies that last, collaborating on projects with conviction. The founders that we work with share our collective vision to revolutionize the blockchain movement.”

Master Ventures, which has over three decades of advisory and incubation expertise, is aiming to build the next generation of blockchain-based Web 3.0 innovations within crypto, while Cryptomeria Capital has deep connections with industry leaders and a group of “Tier 1” Chinese crypto media outlets.

Alphabit, DFG, DuckDAO, GBV Capital, NGC Ventures, WaterDrip and 3Commas are among the other strategic investment partnerships secured by Shadows Network — and the company says each investor offers unrivaled experience within the worlds of DeFi and Polkadot’s blockchain infrastructure. Some of the firms now involved in the project also played a fundamental role in the success of other high-profile projects, including Chainlink, Ocean and Icon.

More insights from Shadows Network here

An innovative approach

Shadows Network says that it has the potential to bring trillions of dollars of offline financial assets into the Polkadot ecosystem through synthetic asset agreements.

The company’s website explains: “Everyone can have their own assets on the chain. Cross-border circulation and transactions can be achieved without regulation or censorship.”

According to the platform, synthetic assets are needed because there will always be people who are unable or unwilling to hold an underlying asset.

In a recent AMA, Shadows COO and co-founder Ted Shao revealed that the first demo of the product is set to launch this month — with a range of exciting use cases set to emerge as 2021 continues.

Learn more about Shadows Network

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