ZURICH, Switzerland—November 27, 2024—Margarita Finance, a Solana-based platform for structured investment products, has raised $1 million in pre-seed funding to bring the $7 trillion structured products market onchain. Notably, the funding round was led by early-stage venture firms such as Tomahawk VC and Outrun Ventures, alongside Swiss-based family office N & V Capital and market maker G-20 Group. Also, the company also received a grant from the Solana Foundation.
Structured products, traditionally hindered by high fees, slow settlements, and restrictive entry barriers, are poised for disruption through blockchain technology. For context, Margarita Finance leverages Solana’s high-speed blockchain, smart contracts, and oracles to streamline investment processes. Its flagship product, Yield Boosters, allows investors to earn double-digit yields on Bitcoin (BTC), Ethereum (ETH), and Solana (SOL) with lock-up periods ranging from one day to three months.
“Our goal is to onboard the other 99% of global potential investors into onchain structured products,” said Benedikt Schuppli, co-founder of Margarita Finance. “Of the one billion potential investors worldwide, only 10 million currently use DeFi. By blending the legal enforceability of traditional finance (TradFi) with blockchain innovation, we aim to unlock opportunities for everyone.”
A New Approach to DeFi Accessibility
DeFi (decentralized finance) is often perceived as too complex for mainstream users. Significantly, Margarita Finance addresses this issue by prioritizing simplicity and user experience. Accordingly, the platform’s real-time pricing and immediate execution ensure accessibility while maintaining competitive yields.
Cedric Waldburger, General Partner at Tomahawk VC, praised the initiative: “Margarita Finance is tackling one of crypto’s biggest challenges: onboarding new users. By focusing on usability and real-world needs like generating yield on Bitcoin, they’re driving the adoption of DeFi solutions.”
The platform, launched in 2024, builds on the expertise of its creators, who previously developed Obligate, an onchain debt capital markets platform. Margarita Finance draws inspiration from the tailored nature of cocktails, offering customizable investment options aligned with users’ yield goals and risk preferences.
Market Potential and Future Goals
The structured products market, estimated at $7 trillion, remains largely untouched by blockchain solutions. Interestingly, Margarita Finance’s adoption of Solana’s infrastructure could reduce costs and inefficiencies, making the market accessible to retail investors.
Furthermore, Margarita Finance plans to expand its product offerings while educating users about the benefits of onchain investments. Meanwhile, the company’s partnership with the Solana Foundation highlights its commitment to innovation and accessibility within the DeFi ecosystem.
About Margarita Finance
Founded in 2024, Margarita Finance is a blockchain-based platform reimagining structured investment products by bringing them natively onchain. It is built on Solana and powered by Obligate tech. Margarita Finance combines blockchain’s speed and cost efficiency with TradFi’s reliability to make structured products accessible to a broader audience.