Airbnb Co-Founder Backs $22.7Mln Funding for Cryptocurrency Dealer SFOX
A cryptocurrency dealer called SFOX, setting out to provide a trading platform for institutional investors has closed its Series A funding round of $22.7 mln.
SFOX announced on Thursday, August 16, that its new equity financing is being led by Social Capital and Tribe Capital, and is backed by Danhua Venture Capital, Digital Currency Group, Y Combinator, and Airbnb co-founder Nathan Blecharczyk, to name a few.
SFOX, founded in 2014, operates a trading hub targeted at institutional investors, individuals with high net worth, and family offices. The platform helps these high volume traders fulfill their buy and sell demands by executing their orders through the firm’s integrations with different crypto exchanges.
The firm aims to reduce the impact of high volume on the crypto market, while giving a boost to trading liquidity which is one of the biggest barriers to institutional cryptocurrency adoption, according to a co-founder of Tribe Capital.
The firm further claimed in the announcement that it has successfully managed to facilitate $9 million in transaction volume so far, and even reports a 12-fold growth in the number of clients already this year.
With the new funding, the firm said it is working on the launch of crypt-asset management services, in addition to its currently existing trading facility. Moreover, it has its eyes set on geographical expansion and plans to increase manpower in the coming 12 months.
Akbar Thobhani, the chief executive at SFOX, said the move is a response to increasing interest from its clients in more exposure to cryptocurrency assets. He commented:
“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.”