Paradigm – an institutional liquidity network for crypto derivatives traders – recently closed a $ 35 million Series A funding round. Co-led by Alameda Ventures and Jump Capital, this round places the company’s value at $ 400 million.
Paradigm’s Role
According to a recent statement, over 25 other investors participated in the company’s most recent funding round. These include Nexo, Genesis Trading, Babel Finance, Dragonfly Capital, Digital Currency Group, and others.
Paradigm aims to provide a bridge for institutional investors between traditional finance and the crypto-economy. It allows them to trade complex derivatives in the Cefi and Defi ecosystems.
The company has achieved remarkable growth, having increased trading volume over its network by 1300% year-over-year. That’s over $10 billion of value traded per month, working with over 600 institutions. It currently accounts for 30% of global options volume.
Ramnik Arora, chief product officer at FTX, said Paradigm “will play an increasingly important role” in the business ecosystem as the market matures.
“For every large or complex trade, the trader needs to ping multiple chats, get quotes and process them manually, settle them on a one-off basis. Paradigm makes this workflow seamless for complex derivatives transactions delivering pricing efficiency, low execution and settlement risk.”
FTX CEO Sam Bankman Fried is also the founder of Alameda, a major investor in this cycle. Recently, Alameda participated in the launch of Defi’s very first syndicated loan product (a loan guaranteed by several lenders).
“At Paradigm, we are focused on establishing a robust network before monetizing,” said Anand Gomes – Co-founder and CEO of Paradigm. “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 Venture Capital Fund
Last month Paradigm announced a $ 2.5 billion venture capital fund dedicated to crypto companies and protocols. It was the largest venture capital fund ever seen in the crypto industry to date, breaking the previous record of $ 2.2 billion set by Andreessen Horowitz in June.
