Onchain Structured Products Infrastructure City Protocol Raises $11M Across Seed And Pre-A Rounds, Backed By Dragonfly, Cmt Digital And Mirana

What Happened

City Protocol, an onchain structured products infrastructure provider, has announced the completion of its seed and Pre-A funding rounds, raising $11 million in total from Dragonfly, Jump Crypto, CMT Digital, Stratified Capital, Adaverse, Mirana and others. City Protocol is building integrated infrastructure for the issuance, operation and distribution of structured products onchain; its flagship product, Venzo, is the onchain structured products platform running on that infrastructure. Venzo currently hosts four strategy vaults with $30 million in TVL, is running its inaugural Polis Points season, and will roll out a non-custodial Thematic Portfolios product line in the near term.

In traditional finance, launching a structured product takes an issuing entity, custody and valuation providers, an operations team and distribution channels — slow, expensive and effectively out of reach for smaller asset managers. Onchain, the problem simply changes shape: strategies, vault contracts, accounting and distribution each sit in their own silo, so issuers rebuild the same plumbing for every product.

Issuance & Operation — product templates covering the full lifecycle from launch to maturity.

Venzo is the flagship product built on City Protocol’s infrastructure, giving users access to verified onchain investment products. Venzo currently hosts four strategy vaults with $30 million in TVL, deployed on EVM-compatible networks with chain abstraction delivering a unified user experience.

Strategy Vaults (live) — bring strategies that were previously the preserve of institutions and professional investors onchain, spanning quantitative hedging, cross-exchange arbitrage, private credit and onchain yield strategies. Users subscribe, strategy providers execute within a defined mandate, and positions are accounted for by NAV with redemption windows.

(launching soon) — package an investment theme into a rules-based basket. User assets stay in the user’s own wallet throughout, while automation executes the purchase and subsequent adjustments according to published construction rules. No funds are pooled and no NAV accounting is run: users hold the underlying assets themselves rather than any share certificate, and can dispose of their positions at any time.

People Trackers — baskets built from the lawfully disclosed holdings of well-known investors, institutions and public officials, updated as new disclosures land.

Market Context

City Protocol breaks that pipeline into three reusable modules, so any team with strategy capability can issue and run a product the way it would call an API:

Vault — pre-audited standard contracts governing capital in and out, execution boundaries, accounting and exit.

On the product side, Venzo runs two vault types, both aimed at turning capability that used to sit behind a high barrier into a product an ordinary user can use directly:

The round drew participation from Dragonfly, Jump Crypto, CMT Digital, Stratified Capital, Adaverse and Mirana — a mix of crypto-native funds, market-making and trading firms, and ecosystem funds that brings distribution alongside capital.

Why It Matters

Tokenization — turns a strategy or an asset class into a verifiable, distribution-ready onchain product.

On security, permissions for a given product are split across separate roles and privileged actions require multiple signatures; fee rules are written into the smart contract and visible before a user acts; positions and execution records stay verifiable and immutable onchain.

Details

Its yield module connects to yield and strategy providers, while execution and lending route through leading decentralized protocols. For developers, City Protocol ships an SDK and portfolio data interfaces, allowing partners to integrate vault products into their front ends within days.

Thematic Portfolios

Thematic Portfolio will ship in two formats:

Sector Themes — baskets built around industry sectors such as space, metals and electric vehicles.

Construction rules and rebalancing cadence are published in advance for both, bringing one-step thematic allocation onchain without users researching individual constituents, placing each order or tracking weight changes by hand.

On the community side, Venzo’s inaugural Polis Points season is under way. Users accrue Polis Points by holding eligible positions in registered vaults, with vault, position, genesis and loyalty multipliers stacking on top of the base rate, plus a referral mechanism. A second Polis Points season will open once the first concludes.

The City Protocol ecosystem counts 51,000+ verified City ID users and 9,400+ ecosystem NFT holders.