Digital asset trading platform FalconX recently secured $17 million in funding from Coinbase and other companies. The plans aim to expand cryptocurrency trading further.
Institutional crypto trading
Founded by Google alumni, the platform is founded to address the growing need for institutional crypto trading services. The US-based firm aims to provide its clients with the best execution rates using data science. The company recently raised $17 million in financing from investors which included names like Coinbase Ventures, Accel, Lightspeed Venture Partners, Flybridge Capital Partners, Fenbushi Capital, Avon Ventures, and Accomplice VC.
The firm plans to use this fund to expand its trade execution suite, introduce new products also bring scale infrastructure that could support the rise in demand for institutional crypto trading. FalconX CEO and founder Raghu Yarlagadda said,
“We’re entering an era defined by the true digitization of value, whether Bitcoin, Ethereum or new experiments such as Libra, or Digital Yuan, much like what we saw in the early 2000s with the digitization of information on the internet.”
Moving towards a new financial infrastructure
Yarlagadda said that the exiting digital financial infrastructure is inadequate for an open, truly global, and permissionless systems to exist. He added that FalconX is helping build a connective platform that could help in seamless value transfer, discovery, and execution of trades. He aims to provide the right infrastructure for up and coming digital assets.
The firm witnessed its global trading volume cross $7 billion in the last 10 months. Its quarterly growth rate is more than 600% because of its tighter spreads, enterprise-grade security, and its more effective elimination of slippage and hidden fees. The platform has two types of liquidity pools- the light liquidity pools that come via exchanges and some proprietary dark pools.
The firm is currently servicing more than 100 financial institutions including trading firms, hedge funds, OTC trading desks, payment gateways, exchanges, and crypto miners. It is also working on improving its reach and expanding into new jurisdictions. The firm began its journey in 2018 with Yarlagadda and Prabhakar Reddy as founders. Reddy is an engineer, investor, and serial entrepreneur with previous experience at VC firm Accel. Yarlagadda is a former Google man who helped Chromebooks become a multi-billion-dollar business.