Zero Hash – formerly the crypto derivatives exchange known as Seed CX – announced on Wednesday that it has closed a Series C fundraiser to help it further develop its settlement-as-a-service business.
Revealed exclusively at The Block, the firm hopes that this new injection of cash will help it achieve profitability by the end of the year. Managing Director Edward Woodford declined to comment on the amount that had been raised. Investors in the round include broker Tastyworks, the active options platform led by Tom Sosnoff, as well as The Small Exchange, Bain Capital, Trade Station, CMT Digital and Monday Capital. A file with the Securities and Exchange Commission shows the round was lifted through debt, bringing in at least $ 3,750,000.
The decision of close the derivatives exchange earlier this year it resulted from its failure to create a market with enough trading volumes to face exchanges like Coinbase and other native crypto exchanges. At the same time, however, the company claims to have seen an increase in interest in its settlement services.
Since then, Zero Hash has continued to develop this business, attracting clients such as payment service providers Moonpay and Banxa, Trade Station and large over-the-counter trading companies. Basically, the business takes care of the pipes and plumbing of what happens after a transaction is executed.
“We take care of any post trade or post trade,” said Woodford. “So, for example, Banxa sets her price and how she wants to match transactions, then we receive the transaction and we handle everything.”
The company is approaching $ 1 billion per month in settlement volume, Woodford said. Zero Hash, like many other market participants, hopes to serve as a backbone for the products of new crypto market participants, allowing them to quickly market products “with a few lines of code.”
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