3F, a protocol designed to facilitate leveraged access to tokenized real-world assets (RWAs), has successfully secured $4 million in funding. This capital raise comprises a $750,000 pre-seed round and a $3.3 million seed round, according to Sonya Kim, co-founder of 3F. The pre-seed fundraising phase took place from July to November 2025, while the seed round concluded in March 2026.
Both funding rounds were structured as Simple Agreements for Future Equity (SAFEs) with the inclusion of token warrants, offering a one-to-one conversion basis for equity and tokens. While the valuation for these rounds was not disclosed, the seed round was spearheaded by Maven 11. Notable participants in the seed round included F-Prime, a global venture capital firm associated with FMR, LLC (the parent entity of Fidelity Investments), Susquehanna Crypto, GSR, and Gate Ventures, among others.
The pre-seed investors consisted of Steakhouse Financial, Rune Christensen (co-founder of Sky, formerly MakerDAO), and Sam MacPherson (co-founder of Phoenix Labs, the team behind the Spark protocol). Mathijs van Esch, a general partner at Maven 11, has been appointed to an observer seat on 3F’s board of directors.
Key Takeaways
- 3F has raised a total of $4 million through pre-seed and seed funding rounds.
- The protocol, built on Morpho, aims to provide leveraged exposure to tokenized real-world assets.
- The funding was led by Maven 11, with significant participation from institutional investors like F-Prime and GSR.
- 3F expects to launch its platform in the second quarter of the current year, with a private beta commencing this week.
- The platform intends to generate revenue via management and performance fees on deployed capital and leveraged returns.
Understanding 3F’s Operational Framework
3F operates on the Morpho decentralized lending protocol, offering users a streamlined “one-click” method to gain leveraged exposure to tokenized real-world assets. The protocol automates the complex process of building leveraged positions. As explained by Kim, users select a supported RWA and a desired leverage factor. The system then manages the acquisition of the underlying RWA through short-term bridge financing, collateralizes it on Morpho, and borrows stablecoins against it to repay the bridge financing. This entire sequence is executed within a single settlement cycle of the asset.
Without 3F, constructing similar positions, particularly for assets with standard settlement cycles like T+1, would necessitate a repetitive process known as “looping.” This involves repeatedly buying an asset, using it as collateral, borrowing against it, and reinvesting the proceeds. Such a procedure, Kim noted, can take considerable time – up to 20 days for entry and 20 days for unwinding a 5x position involving approximately 20 loops – thereby exposing users to market and operational risks.
Currently, institutional funds manually execute these “loops” on platforms like Morpho or Aave for RWAs, a process described as operationally challenging. 3F aims to enhance efficiency and mitigate risk in this execution process.
Kim also acknowledged the inherent risks associated with leverage. These include potential reductions in yield spreads due to rising borrowing costs, delays in position entry and exit dictated by settlement timelines, smart contract vulnerabilities, regulatory uncertainties, and exposure to underlying credit events.
Launch Strategy and Market Outlook
The initial offering from 3F will feature JAAA, a tokenized Collateralized Loan Obligation (CLO) fund with AAA collateralization, provided by web3 asset manager Anemoy. This fund is sub-managed by Janus Henderson and has been tokenized by Centrifuge.
3F anticipates increased demand for tokenized assets as leveraged investment opportunities become more accessible. The protocol suggests that a tokenized fixed-income fund yielding 6%, financed at 4%, could mathematically yield between 10% and 14% with 3x to 5x leverage. This return profile, it argues, provides on-chain capital with a compelling incentive to invest in tokenized funds, an opportunity not widely available currently.
The revenue model for 3F is projected to include management fees calculated on the total deployed capital and performance fees derived from the leveraged returns generated by users.
The company currently employs a team of six individuals and plans to expand its workforce in areas such as credit underwriting, technology, and security. The newly acquired funding will be instrumental in supporting the platform’s development as it prepares for its launch. A private beta is scheduled to commence this week, with a broader public launch expected in the second quarter of the year.
Regulatory Implications and Precedent
Potential Regulatory Precedents in Tokenized Asset Leverage
The operational model of 3F, which facilitates leveraged exposure to tokenized real-world assets, intersects with several evolving regulatory landscapes. As the tokenization of traditional assets gains momentum, regulators globally are grappling with how to classify, supervise, and enforce rules around these novel financial products. The Securities and Exchange Commission (SEC) in the United States, for instance, has consistently signaled a broad interpretation of what constitutes a security, suggesting that many tokenized assets, especially those linked to income-generating real-world assets, could fall under its purview.
Protocols like 3F, by enabling leveraged positions, introduce additional layers of complexity. Regulatory scrutiny often intensifies with the presence of leverage due to its potential to amplify both gains and losses, thereby increasing systemic risk. The legal stakes for companies operating in this space involve ensuring compliance with existing securities laws, anti-money laundering (AML) regulations, and know-your-customer (KYC) requirements. Failure to adhere to these frameworks could result in enforcement actions, fines, or operational shutdowns. The development of comprehensive regulatory frameworks, such as the Markets in Crypto-Activities (MiCA) regulation in Europe, aims to provide clarity but also imposes stringent compliance obligations on crypto-asset service providers and issuers.
The specific offering by 3F, involving tokenized CLOs and managed by established financial entities, further underscores the potential for these digital assets to mimic traditional financial instruments. This could lead regulators to apply established legal doctrines and oversight mechanisms more directly. The precedent set by enforcement actions against similar platforms, or the success of regulated entities in tokenizing assets, will significantly shape the future trajectory for companies like 3F. The industry is closely watching how regulators balance fostering innovation in digital finance with safeguarding investors and maintaining market integrity. The operational model of 3F, while innovative, will need to demonstrate robust compliance and risk management practices to navigate this evolving regulatory environment effectively.
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