SFOX, a cryptocurrency company for institutional investors, closed a $22.7 million dollars Series A funding round. The intention is to launch a crypto management platform for wealthy investors.
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The company released the information in a press release some days ago. According to it, the round was led by Social Capital and Trading Capital. Other companies participated such as SV Angel, DCG, Marko Britto, and the co-founder of Airbnb Nathan Blecharczyk.
Arjun Sethi, co-founder and partner at Trube Capital, said:
“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.”
Tribe Capital will also be joining the board of SFOX in the near future. Mr. Sethi noted that the platform will be delivering institutional investment infrastructure. That means that it will be creating products needed by institutions and other important investors.
“Institutions need a full-service asset management platform that meets the unique needs of cryptocurrency,” he explained about it. “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.”
Institutional investors have been both reluctant to enter the crypto market, and in some cases, banned from doing so. With only a few companies providing the services, moves like SFOX’s funding round have been rare.
At the beginning of the current month, the Intercontinental Exchange (ICE) announced a new digital asset platform known as Bakkt. With it, more institutions may enter the crypto world.
Coinbase, as well, has also entered the market offering services and products for institutions. The exchange and platform decided to create the Coinbase Custody platform. In this way, it is possible for wealthier investors to securely store their funds. After its launched, the company gathered a number of investors in a short period of time.
With new institutions joining the market through offered services, large-scale platform-based money will be playing a very important role in the market’s future.