24 Exchange completes $7 million funding round led by Morgan Creek
Hamilton, Bermuda-based 24 Exchange completed its second financing round in less than three months, raising $7.025 million.
The fresh capital injection was led by digital asset manager Morgan Creek Digital, a hedge fund backed by Morgan Creek Capital. It also saw participation from Aspire Financial, Blackwells Capital LLC and several individual investors.
The company, headed by Fastmatch founder Dmitri Galinov, intends to use the funds for the continued expansion of its OTC trading platform to encompass additional asset classes. This expansion is said to bring new trading options to 24 Exchange’s growing base of institutional market clients.
The new financing comes hot on the heels of a fundraising round of $14.25 million secured by 24 Exchange in December at an undisclosed valuation. That was led by Point72 Ventures, the venture capital firm of the hedge fund titan Steven Cohen.
Dmitri Galinov, founder and CEO of 24 Exchange, joined FinanceFeeds last month at the TradeTech FX USA in Miami to discuss the prospects for 2022.
In our interview, Mr. Galinov said he expects to receive new investment in 2022, including from some of the big-ticket names in the crypto space. He explains that as his company goes through different stages, it has different challenges and needs. Raising capital will remain a constant challenge, he notes, and from round to round, they will meet different players, mindsets and requirements.
24 Exchange could raise up to $100m
Concerning round sizes, Galinov says it would differ significantly depending on market conditions at the given time, but he expects to have future rounds that range from $50 to $100 million and possibly even beyond.
Mr. Galinov concluded that he looks forward to putting this additional capital toward further expanding their offering beyond FX NDFs trading, FX Swaps, FX Spot, and their most recent addition, cryptocurrency trading and equities.
Commenting on the recent funding, Dmitri Galinov said “This new round of investment will help 24 Exchange extend our institutional trading offerings within and beyond FX and cryptocurrency products. We welcome the backing of such proven investors as Mark Yusko’s Morgan Creek Digital, Aspire Financial and Blackwells Capital as we work to bring new low-cost asset trading services to our growing global base of institutional customers. The market’s response to our FX NDF offering has been remarkable, as demonstrated by the fact that our customers have now traded more than one billion dollars’ worth of these assets in a single day on the 24 Exchange platform.”
Mark Yusko, Founder, CEO and Chief Investment Officer of Morgan Creek Capital Management, said, “We are excited to partner with Dmitri and Jason at 24 Exchange. We are of the belief that Dmitri’s and Jason’s experience, leadership, and sense of mission will help 24 Exchange become a notable and leading solutions provider in the institutional cryptocurrency marketplace. We are eagerly looking forward to banks becoming staple participants in the cryptocurrency markets using 24 Exchange’s NDF solutions.”
