In the onset of emerging regulations, cryptocurrency exchanges are looking to legitimize their services. On Sept. 12, Bain Capital Ventures invested $15 million in Seed CX, a licensed institutional digital asset exchange, during a Series B funding round.
First Institutional Crypto Exchange Takes Charge
According to a press release, Seed CX raised funds from several other investors as well, including CMT Digital, Tetras Capital, F2Pool and others. The completion of the investment round brings Seed CX’s total funding to over $25 million at press time.
Seed CX plans to use its funds to hire a team of 40 people, expand its network of institutional traders and further develop its physical trading infrastructure.
In the official press release, Edward Woodford, co-founder and CEO of Seed CX, said:
“The growth of digital assets as an asset class will be based on the adoption of institutional investors and professional traders, who require a trading experience that is on par with that of other instruments, such as equities and commodities.”
Based in Chicago, Seed CX is a licensed institutional digital asset exchange that offers institutional trading and settlement for CFTC-regulated derivatives and cryptocurrencies. The exchange uses settlement engine Zero Hash to offer rapid settlements for both fiat and digital assets and provides custody services through its Digital Asset Vault.
Seed CX is in possession of several licenses, a few of which include a Swap Execution Facility license, Introducing Broker license and pending BitLicense with the New York Department of Financial Services. Seed CX has also applied for a Broker-Dealer registration with the Financial Industry Regulatory Authority.
Salil Deshpande, Managing Director at Bain Capital Ventures, noted:
“Institutions are seeking regulated, secure and reliable crypto venues with diverse products that allow them to earn strong returns. Today, trading venues are retail focused, limited to spot trading, often unregulated and in foreign jurisdictions. The lack of institutional exchanges is the single largest barrier to crypto asset class growth. Seed CX is serving this unmet need of institutions and has assembled an outstanding team of executives to support this vision.”
Seed CX gives institutional and professional traders access to higher minimum order sizes with compatible liquidity as well as an OTC trading service. The platform is currently open for trading.