TVL Capital has completed a $5 million funding round led by U.S. venture capital firm Framework Ventures. The round also attracted participation from Dutch liquidity provider Flow Traders and several strategic investors, according to an announcement released on Tuesday.

The Zug-based company is developing infrastructure for so-called Chain-Traded Products (CTPs) — structured products that are issued, traded and managed entirely on blockchain networks.

TVL Capital was founded by Andrew Peel, former Head of Digital Asset Markets at Morgan Stanley, Penny Tunbridge, former Global COO of UBS Group Integration Office, and Lars Hoffmann, former Senior Research Director at crypto research firm The Block.

Targeting a $2.6 Trillion Market

The new capital will be used to expand the company’s technology platform and accelerate the rollout of Chain-Traded Products. TVL Capital positions CTPs as the blockchain equivalent of exchange-traded products (ETPs), enabling institutional investors to access sophisticated payoff structures and derivatives through blockchain-based infrastructure.

According to the company, the global structured products market represents approximately $2.6 trillion in outstanding volume, while annual issuance has nearly tripled since 2021.

TVL Capital said it is already working with globally systemically important banks, traditional financial institutions, centralized trading venues and leading blockchain protocols.

Regulatory Momentum

The funding round comes amid increasing regulatory clarity for digital assets, particularly in the United States. Recent legislative initiatives, including the GENIUS Act and the proposed CLARITY Act, are expected to create a more supportive framework for blockchain-based financial products.

At the same time, major market infrastructure providers are advancing securities tokenization initiatives. Organizations such as the DTCC, Nasdaq and the New York Stock Exchange have announced projects aimed at enabling blockchain-based securities markets. Industry observers expect the first U.S. securities to be traded directly on blockchain infrastructure as early as 2026.

Governance Strengthened

Alongside the funding round, TVL Capital has expanded its leadership bodies.

Joining the board of directors are Ben Floyd, Venture Partner at Framework Ventures and former Coinbase executive, and Thomas Raab, former board member of SIX Digital Exchange and former Managing Partner for the DACH region at Oliver Wyman.

The company has also broadened its advisory board with several industry veterans, including Larry Cermak, President of The Block, as well as former senior executives from Flow Traders, Morgan Stanley and Credit Suisse.

For TVL Capital, the latest funding round marks an important step toward bringing one of the world’s largest traditional investment categories onto blockchain infrastructure. The transaction also highlights Switzerland’s continued appeal as a hub for next-generation digital capital market innovation.