Since 2021, Hyperglade has leveraged blockchain to address financial challenges and enhance transparency. Initially focused on fiat-based payment solutions for blockchain products, the company has since expanded to connect institutional investors with borrowers and improve transparency in financial transactions. Hyperglade uses blockchain to showcase borrower data to offer clear visibility into investments, fees, and returns. Its platform bridges gaps between digital currencies and real-world assets, empowering fiat and crypto investors to fund tangible real-world economic activities. With partnerships like Draper Associates and Avalanche, Hyperglade aims to create new investment opportunities, diversify borrower bases, and expand across markets while prioritizing compliance and collaboration with regulators, explain the co-founders behind Hyperglade, Kalana Muthumuni, its Chief Executive Officer, and Lakshan De Silva, its Chief Growth Officer.
How does your technology ensure end-to-end transparency in managing complex financial solutions for global clients?
Our solution connects institutional investors with borrowers who face challenges accessing traditional credit through slow, centralized institutions like banks. Historically, a central authority controlled credit, but technology is changing this.
Our platform makes it easy for investors to see exactly where their money is going, how much is being taken by intermediaries, and what their returns on investment are—an issue many investment funds and blockchain ventures struggle with today. Our goal is to open these opportunities to individual investors in the future by making these convoluted and complex processes seamless and transparent.
We use historical borrower data to assess risk and make it transparent using blockchain to enable borrowers to connect with investors across different markets, breaking down barriers and making lending more accessible while ensuring that every part of the process is visible.
Can you elaborate on how Hyperglade bridges the gap between investment funds and borrowers across different regions and what unique challenges Hyperglade is addressing?
Blockchain and digital currencies are still relatively new asset classes, with around $2.5 trillion in digital currencies sitting outside the $75-100 trillion real economy, creating a yawning gap between the two.
We focus on bridging this gap by allowing investors to invest in real-world assets backed by actual economic activities like trade and commerce. A challenge in trade finance is suboptimal credit access, especially in last-mile delivery, which globally represents a $2 trillion gap.
Using the elevated levels of transparency and security of blockchain, we created a new asset class that connects fiat and crypto investors with real-world borrowers. We partner with established supply chains and use short-term credit cycles to ring-fence risks. Our platform bridges the digital and real economies, solving long-standing issues in commerce and making blockchain a practical solution.
Hyperglade has partnered with billion-dollar funds like Draper Associates and Avalanche. How do these collaborations enhance your value proposition in the fintech space?
We are a startup with big ambitions to disrupt the market by creating new investment opportunities for individuals and innovative borrowing solutions for businesses. The key to achieving this is strong partnerships. Draper Associates, one of our lead investors, has been instrumental in opening doors for us and supporting our growth.
We also collaborate with other portfolio companies like Draper Nation and Draper Startup House, expanding our network. Additionally, Avalanche, a billion-dollar blockchain, provides cutting-edge technology and investment support. These partnerships help us grow lending volumes, diversify borrowers, and reach new markets, industries, and risk profiles.
What strategies does Hyperglade employ to adapt its financial technology solutions to diverse markets such as the US, Singapore, Indonesia, and Sri Lanka?
Our go-to-market strategy focuses initially on the APAC region, as Asia is the growth engine of the global economy, with a 40% share of the trade finance gap and the largest population. This region offers immense potential for finding a product-market fit.
Compliance is crucial, and we tailor our approach based on unique market regulations. Although a smaller market, Sri Lanka is a beta testing ground. In Singapore, under the regulation set forth by the Monetary Authority and globally recognized legal partners in the USA, we ensure compliance and mitigate risks, enabling us to customize our strategy for each region, successfully gaining customers and addressing issues in supply chain financing.
How has the company performed thus far?
Since our inception in late 2021, we have experienced remarkable growth. What began with a few part-time co-founders, Hyperglade has evolved into a 15-strong team of experts in finance, machine learning, and blockchain. Initially focused on basic blockchain applications, we have expanded into more comprehensive solutions. Over the next few years, we aim to expand our foothold in Singapore and Indonesia markets with investment instruments from the US. Our financial products have matured, becoming more efficient, transparent, and scalable. Looking ahead, we aim for significant growth, targeting $20 million in fund size by 2025.
As Hyperglade expands globally, how do you balance innovation with regulatory compliance in the fintech industry across multiple jurisdictions?
Fintech is one of the most funded sectors globally, receiving around 20-25% of all startup investments. With this influx of capital, regulators tend to be cautious—often overly so—due to the risks associated with finance, such as money laundering and economic disruption. The core financial technologies have not significantly evolved since the 1970s, so innovation is crucial.
However, regulation often lags behind technological developments. We take a proactive approach by engaging with local regulators and ensuring they are informed about our activities. By aligning with global standards and embracing new technologies like blockchain, we aim to improve traditional systems like trade finance. Collaboration with established players, such as Mastercard, helps us future-proof solutions and navigate regulatory hurdles while driving innovation.