Fission has raised $10 million in a Series A funding round led by Pantera Capital to expand liquidity infrastructure for tokenized investment funds. The blockchain-enabled financial technology company aims to help eligible investors access capital against supported fund products without waiting for conventional redemption windows. Its platform targets a persistent challenge in asset tokenization: putting investment interests on-chain does not automatically create active secondary markets or make traditionally illiquid assets easier to finance.

Fission Raises $10M to Build Liquidity for Tokenized Funds

Tokenization is changing how investment funds can issue, distribute and settle ownership interests, but it does not automatically solve the liquidity constraints associated with private credit, alternative investments and other funds. Many products still operate with scheduled redemption periods, limited opportunities for secondary trading and financing arrangements that restrict how investors can access their capital.

Fission is targeting that gap. The company says its platform provides liquidity for supported tokenized fund products, enabling eligible holders to access capital without waiting for traditional fund redemption cycles. The new $10 million Series A round will support expansion across asset coverage, liquidity capacity and institutional integrations.

Pantera Capital led the financing. Other new investors include Circle Ventures, Borderless Capital and Ari Rubenstein. Existing backers named in the announcement include New Form, gumi Cryptos Capital, Anthony Scaramucci, Manhattan Venture Partners, Reflexive Capital and Lattice Capital. Fission did not disclose a valuation, the detailed terms of the financing or a breakdown of how the proceeds will be allocated.

Tokenization needs more than on-chain issuance

Tokenized funds represent investment interests using blockchain-based tokens. Depending on their structure, these tokens can support digital issuance, transfers and settlement, potentially reducing some operational friction in traditional fund administration.

But representing an asset on a blockchain does not mean investors can freely sell it, redeem it whenever they choose or use it as collateral. Private funds may impose transfer restrictions, investor qualification requirements and redemption limits tied to their underlying investment strategies.

Fission’s proposition is to build a liquidity layer around these products rather than focus solely on token issuance. The company says it supports tokenized funds across private credit, alternative investments and other institutional products, allowing eligible holders to obtain liquidity without waiting for scheduled redemptions.

That distinction matters because the liquidity of a tokenized fund depends on more than the technology used to represent ownership. It also depends on the availability of capital, counterparties willing to transact, the legal rights attached to the token and the restrictions imposed by the fund.

Fission says it has already processed millions of dollars in transactions and is expanding its capacity through traditional and on-chain capital sources. It did not disclose transaction counts, the amount of capital currently available for liquidity, average processing times or the number of funds supported. Those details would help investors assess the platform’s scale and its ability to provide liquidity during periods of market stress.

Institutional controls remain central

Unlike freely transferable crypto assets, tokenized investment fund interests may be subject to securities laws, investor eligibility rules and contractual restrictions. A liquidity provider therefore needs to support transfers and financing while respecting the rules governing each product.

Fission says its infrastructure is designed for institutional and permissioned markets, incorporating investor eligibility requirements, transfer restrictions and compliance controls. That approach aims to enable liquidity without treating regulated fund interests as unrestricted blockchain tokens.

The structure may appeal to fund managers and tokenization platforms looking to make investment products more operationally flexible while retaining control over who can hold them. It could also help eligible investors access capital without forcing a full redemption of their positions, depending on the liquidity arrangement offered for a particular fund.

However, access to liquidity is not the same as a guarantee of immediate cash or an unrestricted right to sell. Availability can depend on capital supply, market conditions, asset eligibility and the specific terms of the arrangement. Investors also need to understand whether a transaction involves selling an interest, obtaining financing against it or using another mechanism to access funds.

The next step: making fund interests more useful

Fission’s longer-term vision extends beyond liquidity access. Founder and CEO Jonathan Shaffer said the company wants tokenized fund interests to become more transferable and usable as collateral in lending markets.

Collateral utility could broaden the role of tokenized funds within financial services. An eligible investor might be able to obtain financing against an investment position instead of selling it or waiting for a redemption window. For lenders, such arrangements would require reliable valuation methods, enforceable security interests and processes for managing defaults or falling collateral values.

These requirements are particularly important for private credit and alternative assets, where valuations may be less frequent and secondary markets less developed than those for publicly traded securities. Tokenization can improve how ownership records and transfers are managed, but it cannot independently create deep liquidity or eliminate the underlying investment risks.

The broader market is also becoming more competitive as financial institutions and blockchain companies develop infrastructure for tokenized securities, fund administration, custody and on-chain settlement. Fission is focusing on a specific layer of that market: the mechanisms that help eligible holders access capital after a fund interest has been tokenized.

Funding will test the liquidity model

Pantera Capital general partner Franklin Bi said liquidity is a critical component in the transition of investment funds to digital infrastructure. The firm’s investment reflects interest in the services needed to make tokenized assets more usable, rather than treating issuance itself as the endpoint.

Fission plans to use the new capital to expand the range of supported funds, increase liquidity capacity and build institutional integrations. Its ability to grow will depend on attracting suitable products and capital providers while managing compliance obligations and the risks associated with financing less-liquid assets.

The central question is whether Fission can provide dependable liquidity across a broader set of tokenized funds, including when markets are under pressure. Its reported transaction activity offers an initial indication of use, but the company has not yet disclosed enough detail to assess liquidity depth or performance across different market conditions.

For the tokenization sector, the financing underscores a wider shift in focus: from putting traditional assets on-chain to building the financial infrastructure needed to transfer, finance and use them. Fission is betting that solving the liquidity problem will be a key part of making tokenized investment funds more practical for institutional markets.

Market Landscape

Tokenized investment funds are part of the broader real-world asset (RWA) tokenization market, which brings representations of traditional financial assets onto blockchain networks. While tokenization can streamline issuance and ownership transfers, liquidity, legal enforceability and investor eligibility remain separate challenges.

Three trends are shaping this market:

• Liquidity infrastructure: Providers are developing ways for eligible investors to access capital without relying exclusively on traditional redemption schedules.
• Institutional-grade tokenization: Platforms must preserve compliance controls, transfer restrictions and investor eligibility requirements while supporting digital asset workflows.
• Collateral and financing utility: Tokenized fund interests could support borrowing and other financing arrangements, provided valuation, legal rights and risk controls are sufficient.

Fission’s strategy targets the infrastructure between token issuance and practical financial use. Its long-term opportunity depends on attracting fund managers, investors and capital providers while demonstrating that liquidity can remain reliable across different market conditions.

Top Insights

• Fission raised $10 million in a Series A round led by Pantera Capital to expand liquidity infrastructure for tokenized investment funds.
• The company says its platform supports eligible holders seeking liquidity without waiting for conventional fund redemption cycles.
• Fission targets tokenized private credit, alternative investments and other institutional fund products with eligibility and transfer restrictions.
• The company reports millions of dollars in processed transactions but has not disclosed total liquidity capacity, transaction counts or detailed performance metrics.
• Future adoption will depend on capital availability, regulatory compliance, enforceable ownership rights and the ability to manage less-liquid assets during market stress.

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