AirBnB Co-Founder Backs $22.7M Investment in ‘Full Service’ Institutional Crypto Platform
Another platform aiming to facilitate institutional investments into the cryptocurrency market is underway, as SFOX successfully closes $22.7 million Series A funding round.
Luring In Big Money
SFOX – a cryptocurrency prime dealer for institutional investors and high-volume traders announced in a press release that it has managed to close $22.7 million Series A funding round for the launch of an institutional cryptocurrency management platform.
According to the release, the round was led by Social Capital and Trading Capital and it saw participation from SV Angel, DCG, the co-founder of Airbnb Nathan Blecharczyk, Marko Britto, Khosla Ventures, and others.
Arjun Sethi, co-founder and partner at Tribe Capital who will also be joining the board of SFOX, noted there is a growing demand from institutions to get involved in the market but there are roadblocks which have to be taken care of:
We continue to observe sustained and increasing demand from institutions that want to include cryptocurrencies as part of a diverse portfolio but are reluctant to do so because of uncertainty and volatility.
He also noted that the new platform of SFOX will be able to provide the tools for institutional investments which are currently missing:
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.
Not The Only One
Prominent companies are working on solutions that would provide the necessary security for institutional investors to enter the cryptocurrency market and SFOX’s is yet another one to join the ranks.
Earlier this month, the owner of the New York Stock Exchange – the Intercontinental Exchange (ICE) announced that it will be launching a digital asset platform dubbed Bakkt. According to different experts, the solution will pave the way for institutions to get involved.
Goldman Sachs, on the other hand, reiterated its plans to start managing Bitcoin for its clients, hence offering a reliable custody solution for big investors.
What do you think of SFOX’s cryptocurrency managing platform? Don’t hesitate to let us know in the comments below!
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