Blade, a cryptocurrency derivatives exchange is set to launch in a couple of weeks time or so and prior to the launch, the company has announced that they have bagged a seed round funding from Coinbase, SV Angel, A.Capital, Slow Ventures, Justin Kan and Adam D’Angelo. The investors have infused $4.3 million in this round in the company as it enters the fray.
Notably, the founders, Jeff Byun, and Henry Lee before starting Blade had sold OrderAhead, a delivery startup platform to Square in 2017. Interestingly, the same set of backers had infused capital in OrderAhead as well. The company will offer to trade for cryptocurrency-based perpetual swap contracts with further improvements.
CEO Byun speaking to TechCrunch regarding the funding from the U.S. investors says that “It’s kind of a bifurcated market. Either you have exchanges like Coinbase or Gemini or Bitrex that cater to the U.S. market that are highly regulated or the exchanges that cater to the non-U.S. market that are much less regulated, but that’s where most of the volume is.”
While the company is attracting funds from Silicon Valley’s VCs, due to the legalities, the U.S. based backers can't participate in the exchange. Interestingly, Blade is an offshore entity to a U.S. subsidiary. The company’s main market is East Asia.
Speaking of their aim going forward, Byun tells TechCrunch that “In the long term, we want to be the CME (Chicago Mercantile Exchange) of crypto. Coinbase and Binance are building this foundational structure for crypto, but I think we are too and in a sense that derivatives are at their core about risk transfer, we want to be building the foundational layer for risk transfer in the crypto markets.”
Image Courtesy : cryptonewsz