Key Takeaways
- • Neutrl raised $5 million in seed funding led by digital asset private marketplace STIX and venture firm Accomplice, with participation from Amber Group, SCB Limited, Figment Capital and Nascent, according to CoinDesk.
- • The DeFi protocol is launching NUSD, a synthetic dollar token that generates yield by buying discounted locked altcoins in over-the-counter markets and hedging with perpetual futures.
- • Neutrl estimates a $10 billion market for locked token deals, driven by a coming wave of altcoin unlocks over the next few years.
- • The protocol targets $2 billion in assets within two years, per co-founder Behrin Naidoo.
- • Neutrl follows Ethena's $6 billion synthetic dollar model and seeks to offer hedge fund-style crypto yield to a broader investor base as DeFi yields have compressed to multi-year lows.
Summary
DeFi protocol Neutrl has raised $5 million in seed funding to launch NUSD, a "synthetic dollar" token designed to package a hedge fund-style strategy into a single instrument, CoinDesk reported on April 16, 2025, citing an exclusive interview with co-founder Behrin Naidoo. The round was led by digital asset private marketplace STIX and venture firm Accomplice. Amber Group, SCB Limited, Figment Capital and Nascent also participated, alongside crypto angel investors including Ethena founder Guy Young and Joshua Lim of Arbelos Markets, which was recently acquired by FalconX.
Neutrl is one of a growing number of protocols offering hedge fund-like strategies in a token with a stable price. Ethena, a $6 billion DeFi protocol, pioneered the approach by holding spot crypto and shorting perpetual futures to capture funding rates. Neutrl's model differs in its source of return: it buys locked altcoins at discounts in private markets, such as Solana's SOL or Avalanche's AVAX acquired at a 20% discount from a foundation, and simultaneously opens a short perpetual futures position. According to the article, the return comes from the price gap rather than market direction.
Naidoo said the strategy has produced high double-digit yields for sophisticated investors who avoid directional crypto exposure. NUSD allows holders to access the strategy without managing the trades manually. Neutrl estimates a $10 billion market for locked tokens, supported by a flood of altcoin unlocks expected over the next few years. The company is targeting $2 billion in assets within two years. The pitch comes as DeFi yields have compressed to multi-year lows, which Naidoo cited as a reason the locked-token opportunity is attractive.
Neutrl is one of a growing number of protocols offering hedge fund-like strategies in a token with a stable price. Ethena, a $6 billion DeFi protocol, pioneered the approach by holding spot crypto and shorting perpetual futures to capture funding rates. Neutrl's model differs in its source of return: it buys locked altcoins at discounts in private markets, such as Solana's SOL or Avalanche's AVAX acquired at a 20% discount from a foundation, and simultaneously opens a short perpetual futures position. According to the article, the return comes from the price gap rather than market direction.
Naidoo said the strategy has produced high double-digit yields for sophisticated investors who avoid directional crypto exposure. NUSD allows holders to access the strategy without managing the trades manually. Neutrl estimates a $10 billion market for locked tokens, supported by a flood of altcoin unlocks expected over the next few years. The company is targeting $2 billion in assets within two years. The pitch comes as DeFi yields have compressed to multi-year lows, which Naidoo cited as a reason the locked-token opportunity is attractive.
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