Finery Markets, a Cypriot financial services market place and dashboard that's specifically geared to crypto liquidity trading and the DeFi ecosystem, is announcing its $5.5 million seed financing round today.
The round is co-led by G1 Ventures, gumi Cryptos and Shima Capital. Also taking part is the digital transformation-led payment processing business Unlimint and blockchain angel syndicate Daedalus Angels, along with Communitas Capital, DV Chain, GravityX, oneAlpha, Floating Point Group and unnamed "industry leaders."
Post-FTX, one of the biggest continuing draws for the crypto movement is the decentralised B2B financial services ecosystem, where products like crypto loans bypass some of the due diligence roadblocks inherent with their traditional financial equivalents.
Finery Markets set out in 2019 to collate some of this deep liquidity into a marketplace; it now has more than 70+ DeFi service businesses listed. The software stack has a matching engine to take customers to the best-fit DeFi deal, as well as a dashboard-led user interface with several financial tools for real-time crypto liquidity trading, covering for instance price fluctuations, risk management and any flexibility in loan settlements; both pre-trade and post-trade.
Rui Zhang, co-founder and managing partner of gumi Cryptos Capital, explained how the Finery Markets business model had managed to emulate over-the-counter TradFi actvity.
"As we observed in the TradFi world, a majority of the transactions are actually completed via OTC market, rather than exchanges. We believe it will be the same for the crypto market. " Zhang said, "As a multi-dealer execution venue, Finery is able to provide a much more efficient trading operation, lower execution cost, and safer clearing control for institutional users."
The $5.5 million is the first time Finery Markets has sought external funding. Coming on the back of 12-fold annual revenue growth last year, the fundraise also helps Finery face up to the cryptocurrency storm. With Binance recently moving to provide customers with hard evidence of its crypto reserves, Finery has said that as a "non-custodial" market, it never has reason to lend or invest customer crypto holdings.
And it's been carving out reputational gains on crypto security for some time, last year it co-hosted a webinar on crypto risks — with the title "Don't let your money get stolen. Toxic flow in crypto markets explained."
Konstantin Shulga, co-founder and CEO of Finery Markets, claimed his business had the "first multilateral institutional marketplace in the crypto space".
"We aim to establish best practices across trading, risk management and operational standards for crypto. We see our role as a foundational building block for maturing market infrastructure, which makes markets more efficient and sustainable.
"As a marketplace, we focused on bringing in a diverse mix of leading investors that represent web3 funds, strategic partners and traditional venture capital firms, led by veterans of the electronic trading business."