Buzzy institutional FX and cryptocurrency platform, 24 Exchange, has secured $14.25 million in funding from hedge-fund legend Steve Cohen’s Point72 Ventures.
24 Exchange will use the funds for product development, deeper penetration into its current markets, scaling operations, expanding its team and enhancing its multi-asset offering. It will also use the investment to scale up its core technology to support customer demand on trading additional asset classes, including equities and cryptocurrencies.
The fresh capital injection comes on the heels of 24 Exchange applying for a US national securities exchange license with the Securities and Exchange Commission. The Hamilton, Bermuda-based platform currently deals in the foreign-exchange and cryptocurrency markets.
Led by longtime electronic-trading executive Dmitri Galinov, 24 Exchange wants to offer equities trading 24 hours a day, 365 days a year, including holidays. Fastmatch founder believes the new offering will be particularly appealing to retail traders who are already trading assets such as crypto.
Commenting on the news, Dmitri Galinov said, “In the company’s first 24 months, we’ve successfully delivered an over-the-counter FX trading solution to clients that offers significantly reduced costs and improved functionality. We look forward to putting this additional operating capital to work to further expand our offerings beyond FX Non-Deliverable Forward (NDF) trading, FX Swaps, FX Spot, and our most recent addition, cryptocurrency trading.”
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Steve Cohen’s Point72 Ventures picks stakes in companies in fragmented industries with high turnover and low margins. The $22 billion fund is however separated from Point72 Asset Management, the family office managing the wealth of the hedge fund legend, who was restricted from managing third-party funds until 2015.
The new investment in 24 Exchange is not Point72’s first wager into a crypto-related business. Actually, it further confirms the interest of Cohen and his flagship hedge fund’s venture arm in the crypto industry. Earlier this year, Point72 Ventures led a $21 million funding round backing blockchain analytics firm Messari. It also participated in a $35 million Series C funding round for Zero Hash, a crypto services startup.
Pete Casella, Partner at Point72 Ventures, added, “We believe that widespread institutional adoption of crypto will require building bridges that enable traditional financial firms to access crypto in a way that looks and feels like how they operate in other tradable assets, such as FX or derivatives. 24 Exchange is doing just that by introducing innovations like the crypto non-deliverable forward contract, which allows institutions to gain exposure to this new asset class without taking on the risk, capital requirements, and regulatory uncertainty associated with carrying the underlying asset on their balance sheet.”
The recent investment also comes shortly after 24 Exchange bought the New York-based technology and service provider 11B Technologies for an undisclosed sum. The acquired company provides brokerage solutions and integrations for OTC venues, brokers and professionals