Neutrl has raised $5 million to launch its NUSD token, which tokenizes hedge fund-like yield strategies for broader investor access. The NUSD token uses arbitrage of discounted altcoins in a $10 billion private market from locked altcoins. Neutrl aims for $2 billion in assets over the next two years, adapting a popular hedge fund strategy to the DeFi space.
Neutrl, a decentralized finance (DeFi) protocol, has successfully raised $5 million to introduce hedge fund-style yield strategies to a wider pool of investors through its NUSD token. Co-founder Behrin Naidoo highlighted that the NUSD token operates by arbitraging locked altcoins, tapping into a substantial $10 billion private market. This development aims to democratise access to sophisticated investment strategies traditionally reserved for elite investors.
The NUSD token, inspired by the success of the $6 billion DeFi protocol Ethena, is a synthetic dollar token that focuses on over-the-counter (OTC) altcoin arbitrage and delta-neutral hedging, as evidenced in an exclusive interview. Notable backers of Neutrl include STIX and Accomplice, with additional support from firms like Amber Group and SCB Limited, along with various crypto angel investors who bring considerable market expertise.
Neutrl’s structure is designed to purchase locked altcoins at discounted rates in private markets and simultaneously hedge using perpetual futures. For instance, an investor could obtain discounted Solana (SOL) or Avalanche (AVAX), and secure returns from the price difference rather than relying on market fluctuations. This hedge fund strategy yields attractive returns without requiring directional bets on asset prices.
By offering a single token—NUSD—that covers the entire trading strategy, Neutrl aims to simplify access for a broader investor base. With numerous altcoins set to unlock in the coming years, the company projects a $10 billion market in locked tokens, presenting significant yield potential, particularly as crypto yields in traditional DeFi have recently reached low levels. Neutrl aspires to expand its managed assets to $2 billion within the next two years.
Krisztian Sandor, a U.S. markets reporter, focuses on issues related to stablecoins, tokenisation, and real-world assets. He holds various cryptocurrencies, including Bitcoin (BTC), Solana (SOL), and Ethereum (ETH).
