Paradigm Raises $35m to Expand Institutional Liquidity Network for Derivatives Trading
Paradigm has raised $35 million in a Series A funding round co-led by Jump Capital and Alameda Ventures. More than 25 investors have participated in the fundraiser, including Genesis Trading,
Paradigm has raised $35 million in a Series A funding round co-led by Jump Capital and Alameda Ventures.
More than 25 investors have participated in the fundraiser, including Genesis Trading, QCP Capital, Nexo, Optiver US, IMC, GSR Markets, Akuna Capital, Babel Finance, MGNR, Avon Ventures, CMT Digital, executives at Goldentree Asset Management and Amber Group.
The round values the company at $400M and is paramount for the development and expansion of the zero fees, institutional liquidity network for derivative traders of digital assets.
Paradigm serves as a liquidity access point to institutional buyers and sellers for large and/or complex derivatives trades across both CeFi and DeFi markets.
Anand Gomes, Chief Executive Officer at Paradigm, said: “We estimate that large and multi-leg orders account for roughly 30% of global listed derivatives volumes, or roughly $50-75 B per day. At Paradigm, we are focused on establishing a robust network before monetizing. This funding round allows us to continue building out our network of institutional traders, CeFi exchanges, and DeFi protocols, while also enhancing our 24/7 customer support, and expanding upon our current product offerings to better accommodate the needs of our clients.”
Paradigm proposes on-demand liquidity tailored to the needs of institutional clients, from price, size, immediacy, and risk preferences, while offering standardized workflow automation tools to facilitate the negotiation and execution of complex, multi-leg and multi-product strategies via a single atomic transaction.
The firm has seen trading volumes on the network increasing 1300% year-over-year to $10B in total volume traded per month and the company tripled its staff as the business captured a 30% market share of options volume.
Partnering with over 600 institutions, Paradigm offers complex orderbooks focused on spreads and combinations, spread matrices for futures, and loans rate curves.
Investors from previous seed rounds Dragonfly Capital, Digital Currency Group, Vectr Fintech Partners and Mirana Ventures, Venture Partner of Bybit and BitDAO also participated.
Reporting by Rick Steves. Filed 10 December 2021, 23:26 GMT.
Senior Reporter, Regulation and Fintech
Rick Steves has seen business and economics through many lenses. He joined the financial services industry in 2009, and has been a financial journalist since 2011.
