Venture capitalist Bain leads funding for institutional crypto platform
US venture capitalist Bain Capital Ventures had led a $15m funding round for SeedCX, the first licenced cryptocurrency exchange to offer institutional trading and settlement for CFTC-regulated derivatives.
Bain Capital takes lead in latest round of funding for SeedCX exchangeSeedFX announced on Wednesday that it was to use the latest round of financing to expand its physical trading infrastructure and broaden its network of institutional trading groups.
Importance of institutional trade
Indeed, chief executive and co-founder Edward Woodford stressed the importance of attracting institutional investors for the future growth of the digital asset market.
“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,” Woodford said.
He added: “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.”
The company’s total funding has now reached more than $25m following this latest round.
Bain Capital managing director said about its involvement: “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.”