Paradigm Leads $20M Funding Round for Fractional NFT Protocol

Fractional, a protocol that enables collective ownership and governance of non-fungible tokens (NFTs), is rebranding as Tessera, and it also revealed a $20 million funding round led by crypto-native investment giant Paradigm that closed earlier this summer.

NFTs are unique digital assets such as images or music that include proof of ownership. While the tokens are singular by definition, fractional NFT ownership is possible when the asset is locked into a decentralized platform and is then split into multiple fungible tokens.

Fractional NFT ownership opens up bragging rights and loan collateral for expensive or highly desired assets, reducing both the costs and the risks.

"NFTs are transforming how people interact, build community and view governance, so we're transforming, too – from a simple smart contract to full-blown NFT infrastructure to support the future of collective ownership," the Fractional (now rebranded as Tessera) team wrote in a Medium post.

Other investors in the Series A funding round included Focus Labs, Uniswap Labs Ventures, eGirl Capital and Yunt Capital.

Last year, Paradigm launched a then record-breaking $2.5 billion crypto-focused venture capital fund, a title that was stripped in May when Andreessen Horowitz started a $4.5 billion investment vehicle.

Source: CoinDesk