Familiar Crypto Faces Line Up in ErisX Series B
Soon-to-be cryptocurrency derivatives platform ErisX has announced the completion of a successful Series B funding round backed by cryptoverse powers like ConsenSys and Bitmain. More recognizable yet were the round’s mainstream participants like Nasdaq Ventures and Fidelity Investments.
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ErisX Gets Second Wind in Series B
On December 4th, ErisX announced the completion of a $27.5 million USD round of financing. The influential, who’s-who of relevant participating investors suggests the cryptocurrency exchange is going to be a force to be reckoned with in the years ahead.
Nasdaq Ventures, the venture arm of the Nasdaq Stock Market, and Fidelity Investments headed up the Series B’s mainstream investors.
The swap futures platform turned cryptocurrency exchange garnered its first round of strategic investments this past fall.
That series of investments was headlined by brokerage heavyweight TD Ameritrade and exchange holding mainstay Cboe Global Markets, owners of the Chicago Board Options Exchange that was at the vanguard of offering bitcoin futures contracts in the U.S.
First created in 2010 as a cash-settled swap futures platform, ErisX saw its Board of Directors pivot the service to a cryptocurrency exchange in late 2017.
The insurgent, institutionally-minded exchange is gunning to achieve the status of a Derivatives Clearing Organization (DCO) from the U.S. Commodities Futures Trading Commission in early 2019.
If that DCO status can be actualized, ErisX is aiming to launch cryptocurrency spot contracts and physically-settled crypto futures next year. The exchange is reportedly interested in offering crypto derivatives for bitcoin and some further assets, e.g. ether and litecoin.
The Rise of Bakkt, ErisX, Fidelity Digital Assets
2018 may have entailed a prolonged bear market for the cryptoeconomy, but it’s also seen a series of new exchanges rise in ErisX, Bakkt, and Fidelity Digital Assets.
These platforms bode a future wherein institutions increasingly embrace cryptocurrencies.
Beyond ErisX, take Bakkt for example. A forthcoming cryptocurrency trading and derivatives platform, Bakkt is being launched by Intercontinental Exchange Inc. (ICE), the owner-operators of the New York Stock Exchange among several similar marketplaces.
ICE generates billions of dollars of revenue annually, and in that context, Bakkt is their big bet that big-cap cryptocurrencies are here to stay. For now, the exchange has pushed back its launch and its bitcoin futures product until January 2019.
Then there’s Fidelity Digital Assets, a “full-service” cryptocurrency trading and custody platform announced by multinational asset manager maestros Fidelity in October 2018.
The interest here of Fidelity, which currently manages trillions of dollars worth of clients’ assets, suggests the institutional meld with the cryptoeconomy may only be beginning.
OKEx Perpetual Swaps Announced
The other big crypto derivatives news to drop thus far this week was OKEx’s announcement of its launch of cryptocurrency-centric perpetual swap contracts.
Thank you all for participating in the OKEx NEXTGEN Conference. It could not be a success without the support from you. Let’s revisit the exciting product launch:https://t.co/8UENhk6XOA
— OKEx (@OKEx) December 3, 2018
Per the exchange, these swaps will “enable traders to speculate [on] the direction of the price of digital assets such as Bitcoin.”
The move further entrenches OKEx’s position as a competitor to BitMEX, which already offers a perpetual contracts marketplace.
What’s your take? Will the ErisX Series B be enough to help the exchange make serious headway in 2019? Let us know in the comments section below.
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