German startup Midas has raised $50 million in an early-stage funding ‌round led by venture capital firms RRE and Creandum, with backing from investors including Coinbase Ventures ​and Franklin Templeton, it said on Monday.

Founded in 2024, the company turns investment ​products into digital tokens ​that can be traded on blockchain networks. The process, known as tokenisation, has drawn growing attention in recent months with proponents seeing ⁠it as a way to modernise capital markets by making financial products more transparent and easier to trade.

However, the still-nascent industry faces uncertainty around regulations, which could hamper broader adoption, as well as increased competition as financial heavyweights enter ​the space.

Other ‌investors in Midas's ⁠funding round included ⁠Framework Ventures, HV Capital, Ledger Cathay, M1 Capital, Anchorage Digital, FJ Labs, North Island Ventures, ​No Limit Holdings and GSR.

The company did not disclose ‌its latest valuation.

The financing exceeded the amount ⁠startups typically haul in at this stage. According to data from research firm PitchBook, the median size for Series A and Series B funding rounds in Europe stood at 14.4 million euros ($16.58 million) last year.

"A significant share of our early adopters are crypto-native, but we are seeing growing interest from larger institutions that want to work with tokenised assets," Midas co-founder and CEO Dennis Dinkelmeyer told Reuters.

The company plans to invest proceeds from ‌the round into its core infrastructure. While Midas does not ⁠yet operate in the United States, Dinkelmeyer said it ​was on the "roadmap".

"We're actively investing in the legal and regulatory framework for U.S. entry so that when we do choose to expand there, we can do ​so in ‌a way that's durable, scalable and fully aligned with the ⁠local regulatory framework," he added.

(1 ​euro = $1.1511)

(Reporting by Niket Nishant in Bengaluru; Editing by Janane Venkatraman)