Arbelos Markets Raises $28 Million to Strengthen Crypto Liquidity Provisioning
In a significant development within the cryptocurrency industry, Arbelos Markets, a prominent crypto liquidity provider, has successfully raised $28 million in a seed funding and debt financing round. The fundraising round was led by Dragonfly Capital and saw participation from Circle Ventures, Aevo, Polygon, Deribit, Immutable, and other notable investors. The infusion of capital positions Arbelos Markets to enhance its quant trading infrastructure, expand its team, diversify its product offerings, and extend its market reach.
Arbelos Markets Co-founder and CEO, Joshua Lim, expressed the company’s vision, stating, “Arbelos is replacing the pre-FTX…trading system with one based on provable trust.” This statement underscores the company’s commitment to building a transparent and trustworthy trading ecosystem within the cryptocurrency space, noted by The Block.
Founded in 2023 by Joshua Lim and Shiliang Tang, Arbelos Markets aims to become a leading principal dealer in the cryptocurrency market. Leveraging their extensive experience in both cryptocurrency and traditional finance, the founders have developed a proprietary Transparency Engine to facilitate transparent and efficient trading operations. Lim, a former trader at Galaxy and Genesis, brings valuable insights from the traditional finance world, while Tang, previously CIO at digital asset hedge fund LedgerPrime, contributes expertise in crypto trading strategies and risk management.
The role of liquidity providers like Arbelos Markets has become increasingly critical amidst the growing institutional interest in cryptocurrency derivatives. The digital asset market has witnessed a robust recovery in recent years, with institutional investors flocking to crypto derivatives to gain exposure to the burgeoning asset class. According to data from The Block, the combined open interest for bitcoin futures and perpetual swaps reached a record $29 billion in April 2024, marking a substantial 160% increase from the previous year. This surge in derivatives trading underscores the need for reliable and efficient liquidity provision to support the growing demand from institutional investors.
Arbelos Markets’ focus on transparency and trustworthiness sets it apart in an industry often plagued by opacity and uncertainty. By leveraging their proprietary Transparency Engine, the company aims to provide market participants with greater visibility into trading activities, thereby fostering confidence and promoting fair and orderly markets.
The successful fundraising round highlights the confidence that investors have in Arbelos Markets’ business model and leadership team. With the newly raised capital, the company is well-positioned to accelerate its growth trajectory and solidify its position as a leading liquidity provider in the cryptocurrency market.
Looking ahead, Arbelos Markets plans to leverage its enhanced resources to further enhance its trading infrastructure, expand its team of talented professionals, and explore new opportunities for product innovation and market expansion. As the cryptocurrency market continues to evolve and mature, liquidity providers like Arbelos Markets will play a pivotal role in facilitating liquidity and driving efficiency in the digital asset ecosystem.
In conclusion, Arbelos Markets’ successful fundraising round marks a significant milestone in the company’s journey towards becoming a trusted and reliable liquidity provider in the cryptocurrency market. With its focus on transparency, trustworthiness, and innovation, Arbelos Markets is well-positioned to capitalize on the growing demand for cryptocurrency derivatives and establish itself as a key player in the rapidly evolving digital asset landscape.