Seed CX, the cryptocurrency exchange that offers institutional trading and settlement for both spot market and Commodity Futures Trading Commission (CFTC)-regulated derivatives, has raised $15 million in Series B funding round, led by Bain Capital Ventures, bringing Seed CX’s total funding to date to over $25 million.
The company said that it will use the latest round of financing to expand its physical trading infrastructure, broaden its network of institutional trading groups, and more than double its team to close to 40 people, primarily in operations, market surveillance, and technology. Edward Woodford, Seed CX’s co-founder and CEO 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. 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 provides a couple of services to institutional investors and professional traders. For instance, it offers a diverse crypto and fiat product suite, the ability to integrate with popular institutional order management systems, and easy market monitoring. Secondly, it has an active regime of trade surveillance, segregated trader accounts, audit trails, and circuit breakers as part of its risk management system. Through its settlement engine, Zero Hash, Seed CX also offers physical settlement for a range of fiat and digital assets, as well as custody through its proprietary Digital Asset Vault. Salil Deshpande, Managing Director at Bain Capital Ventures said:
“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 and its subsidiaries hold the following registrations and licenses: Swap Execution Facility (CFTC), Introducing Broker (NFA), Money Services Business (FinCEN), and Money Transmitter (15 states, including Delaware, Illinois, and Connecticut), and it has a pending BitLicense with the New York State Department of Financial Services (NYDFS) and a pending Broker-Dealer registration with the Financial Industry Regulatory Authority (FINRA).