Anzen Finance, a firm issuing the digital dollar USDz, has raised $4 million in seed funding.

Mechanism Capital, Circle Ventures, Frax, Arca, Infinity Ventures, Cherubic Ventures, Palm Drive Ventures, M31 Capital, Kraynos Capital and others participated in the funding round, according to a release shared with The Block.

The seed funding comprises the firm's total funding to date. Anzen's board of directors will not change following the funding round, the firm's founder Ben Shyong told The Block.

Anzen allows users to mint USDz, which is supported by "a diversified portfolio of private credit assets," the company release continues. These cash-flowing RWAs collateralize USDz, and the token can be staked throughout other DeFi protocols. Anzen is live on the Layer 1 Ethereum and the Layer …