A recent article published earlier in the week suggests VC arms of Nasdaq and Fidelity Investments have funded a new cryptocurrency exchange named ErisX. Overall, the startup raised a total of $27.5 million during its Series B funding round.
ErisX will allegedly provide users with the opportunity to trade major cryptocurrencies like Litecoin, Ethereum and Bitcoin on futures and spot markets from the second quarter of next year.
The trading platform will begin its operations after it secures the right approval from regulatory bodies. Nasdaq has recently confirmed that its participation in the Series B funding round but it has declined to disclose the amount that was invested. In a similar light, Fidelities VC arm hasn’t replied on the matter either.
The CEO of ErisX, Thomas Chippas stated the funds received would be used to bring in new staff and develop the proper infrastructure to make sure that a transparent and efficient regulated market for digital assets.
The firm's long-term plans involved offering clearinghouse services despite the company not registered for clearinghouse operations as well as becoming a fully-regulated futures market.
There are several high profile players from the digital currency space which have put themselves behind the project.
As reported by BTC Manager, the CEO of ConsenSys and one of the co-founders of Ethereum, Joseph Lubin has given his views on ErisX by saying that it is a crucial step in the long-term mission of convergence of traditional assets with the emerging class of digital assets. On top of this, he noted that ErisX could have sparked a significant demand from institutional investors in spot and futures crypto asset markets next year.
The co-founder, Jihan Wu has given his views on ErisX saying:
“Many of our customers have been seeking various hedging solutions and would be happy to see US regulatory compliant exchanges like ErisX provide spot and futures’ contracts in one platform. We are confident that our customers will find this strategic partnership beneficial.”
Even though the crypto market has seen gone up by over 30 percent in just the past month, startups in the space aren’t facing any issues in convincing VCs for funds.
It was reported in late November on how a startup by the name of Securitise aimed to create an appetite for digital tokens in the security backing from the giant crypto exchange, Coinbase while raising funds for its Series A round.
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