Seed CX, a Chicago-based digital asset exchange has raised $15 million in a series B funding round providing the platform a solid runaway for growth. Seed CX proudly notes it is a “licensed institutional cryptocurrency exchange” providing institutional trading and settlement for both spot market and CFTC regulated derivatives. Investors include prominent names. Bain Capital Ventures led the round with OKCoin USA taking an equity stake in the firm. Seed CX’s total funding to date is now over $25 million.
The money will be used to expand its physical trading infrastructure, broaden its network of institutional trading groups, and boost its team.
“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,” stated Edward Woodford, Seed CX’s co-founder and CEO. “As a licensed exchange for both spot and derivatives trading, we deliver the operational risk safeguards, strong institutional technology, operational support, and regulatory compliance that institutions demand. What is particularly exciting is that our unique offering brings large institutional traders, who have so far sat on the sidelines, into the crypto space for the first time.”
Seed CX explains that it provides institutional investors and professional traders with the market structure and technology they need to add crypto to their portfolios and investment strategies, in the following areas in particular:
- Trading – Seed CX supports FIX connectivity and multiple trading desks, and offers a diverse crypto and fiat product suite, the ability to integrate with popular institutional order management systems, and easy market monitoring.
- Risk Management and Operations – Seed CX protects market participants through an active regime of trade surveillance, segregated trader accounts, audit trails, and circuit breakers, all on a stable, reliable, and secure infrastructure and backed by a dedicated account team.
- Settlement and Custody – Seed CX, through its settlement engine, Zero Hash, offers physical settlement for a range of fiat and digital assets, as well as custody through its proprietary Digital Asset Vault.
Salil Deshpande, MD at Bain Capital Ventures, said that institutions are seeking a regulated, and secure, trading venue for crypto;
“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.”
According to the company, Seed CX, and its subsidiaries, hold the following registrations and licenses: Swap Execution Facility (CFTC), Introducing Broker (NFA), Money Services Business (FinCEN), and Money Transmitter (14 states, including Delaware, Illinois, and Connecticut), and it has a pending BitLicense with NYDFS and a pending Broker Dealer registration with FINRA.