Superstate was founded by Robert Leshner, a former banker who is well regarded in the crypto world for building Compound, one of the first and most successful DeFi platforms. In an interview with Fortune, Leshner said some sophisticated investors have for years earned a yield premium on the arbitrage opportunity in spot and future crypto prices. But by creating a token to carry out the trade, he says, Superstate has made the process more accessible—and also more liquid since traders will be able to swap the tokens—known as USCC—with each other.

Superstate raised $14 million late last year, and launched its first fund in early 2024, offering tokenized versions of familiar products like Treasury Bills. The new Crypto Carry fund will primarily invest in both Bitcoin and Ethereum arbitrage opportunities but, during times when the spread does not offer a problem, will put investors’ money in T-bills and other safe investments instead. Unlike hedge funds, there is no lock-in and returns will be available on a daily basis.

Superstate co-founder Jim Hiltner says the new Superstate fund will charge customers a fee of 75 basis points, and added this a better deal for investors than seeking exposure to the crypto carry trade through hedge funds, which charge a so-called two-and-twenty rate. Hiltner also stated that the fund is structured so that it will not be vulnerable to margin calls, and that it will carry a cash buffer in any case.

The biggest catch for most investors is that the new fund is only open to so-called qualified purchasers who have $5 million in assets, while the lowest buy-in is for $100,000. The Superstate founders say they hope that, in time, the assets will become more broadly accessible but that, for now, the new fund is groundbreaking because it is totally compliant with existing U.S. regulations.

In the bigger picture, SuperState is at the vanguard of a growing corner of the crypto industry that seeks to tokenize conventional assets. While firms, including banks, have dabbled with the idea of “real world assets” on the blockchain for years, the idea appears to be finally gaming momentum as Wall Street comes to fully embrace crypto. Indeed, giants of traditional finance are making a push, including Goldman Sachs, which says it will launch three tokenization projects by the end of the year.

Leshner notes that SuperState’s first fund has already amassed $100 million in assets, and that some big names from traditional finance will soon join a recently-launched industry council dedicated to tokenizing real world assets.

“We’re getting exactly the traction we wanted,” says Leshner. “More important than AUM is that intermediaries such as prime brokers are getting wired into crypto.”