SFOX, a cryptocurrency trading platform for large-scale institutional investors, has raised $22.7 million in Series A funding. The round was led by Arjun Sethi from Tribe Capital and Social Capital, with participation from Airbnb Co-Founder Nathan Blecharczyk, Y Combinator, Khosla Ventures, DHVC, Blockchain Capital, Upside Partnership, SV Angel, DCG, and Mark Britto.
With this round of financing, SFOX plans to develop infrastructure for institutional investors' cryptoasset management needs. This will include advanced security and risk management products, additional infrastructure and support, and licenses to access new markets. SFOX believes these offerings will create new untapped opportunities for institutional investors. Akbar Thobhani, CEO of SFOX said:
"We've seen high interest from our clients in expanding their exposure to crypto assets. Institutions need a full service asset management platform that meets the unique needs of cryptocurrency. This is not being fulfilled by traditional tools and current platforms. We're in a great position to provide these rails. This investment will allow us to pursue this evolution."
Arjun Sethi, Co-Founder and Partner at Tribe Capital, who will be joining SFOX's board said that institutions want to include cryptocurrencies as part of a diverse portfolio but are reluctant to do so because of uncertainty and volatility and added that SFOX is the answer to these concerns.
"Liquidity represents one of the most significant barriers to institutional cryptocurrency adoption. What has always excited us about SFOX and differentiates them from other players is that they provide access to a global integrated order book, sourced from exchanges, OTC desks, and market makers. This means institutions can trade from a single account and have the ability to buy and sell high volumes without impacting prices. This is exactly what institutional investors looking to embrace cryptocurrencies need today and in the future, as the ecosystem becomes more fragmented."
SFOX was founded in 2014 as a cryptocurrency prime dealer to serve large-scale investors such as funds, family offices, and high-net-worth individuals and has over $9 billion in transaction volume to date. It has seen its client base grow 12-fold since the beginning of 2018 alone.