Paradigm’s Series A round values institutional liquidity network at $400m

Rick Steves

Paradigm captured a 30% market share of options volume globally in 2021, according to the firm which has increased its headcount 3 times.

Paradigm has closed a $35M Series A funding round, valuing the institutional liquidity network for derivative traders at $400M.

The fundraise was co-led by Jump Capital and Alameda Ventures and the funds will fuel the firm’s efforts to build the liquidity access point to institutional buyers and sellers for large and/or complex derivatives trades across both CeFi and DeFi markets.

Paradigm service is free to use

Finding liquidity on-demand – tailored to price, size, immediacy, and risk preferences – can be an extremely challenging task.

Institutional traders have been relying on their own private network of counterparty relationships to help source liquidity, particularly for large and multi-leg/complex trades.

The negotiation and execution of complex, multi-leg and multi-product strategies are currently without standardized workflow automation tools.

Enter Paradigm, which connects traders directly with institutional counterparties for better pricing and in large sizes, while offering workflow automation tools necessary for strategies with underlying hedges via a single executable structure. The service, which is free to use, increases trading precision, eliminates leg risk, and lowers execution costs.

Paradigm has partnered with more than 600 institutions so ensure that trading volumes on the network are high enough. The firm states volumes have increased upwards of 1300% year-over-year to $10B in total volume traded per month, posting significant growth in 2021.

Paradigm is non-custodial and charges no fees

Paradigm captured a 30% market share of options volume globally in 2021, according to the firm which has increased its headcount 3 times.

Anand Gomes, Co-Founder and Chief Executive Officer, stated: “We estimate that large and multi-leg orders account for roughly 30% of global listed derivatives volumes, or roughly $50-75 B per day. At Paradigm, we are focused on establishing a robust network before monetizing. 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’s product suite includes complex orderbooks focused on spreads and combinations, spread matrices for futures, and loans rate curves. Traders on Paradigm choose the settlement venue where they want their trade to settle, which allows Paradigm to remain non-custodial and charges no fees.

The Series A funding round included 25 investors: Genesis Trading, QCP Capital, Nexo, Optiver US, IMC, GSR Markets, Akuna Capital, Babel Finance, MGNR, Avon Ventures, CMT Digital, executives at Goldentree Asset Management, and Amber Group.

Investors from previous seed rounds Dragonfly Capital, Digital Currency Group, Vectr Fintech Partners, and Mirana Ventures, Venture Partner of Bybit and BitDAO also participated.

Read this next

Institutional FX

Marex completes acquisition of TD Cowen’s PB business

London-headquartered commodities broker Marex has completed the acquisition of TD Cowen’s prime brokerage and outsourced trading business, which will be integrated into Marex’s capital market division. This division was established following the acquisition of ED&F Man Capital Markets in 2022.

Digital Assets

Talos introduces decentralized liquidity and onchain settlement with Uniswap and Fireblocks

“At the cornerstone of the DeFi ecosystem, Uniswap has the breadth of assets and depth of liquidity that institutional traders need. And to have this partnership powered by Fireblocks, a digital assets infrastructure provider trusted by some of the most renowned institutions, is very fitting.”

Digital Assets

FINMA-regulated crypto bank SEBA Bank rebrands to AMINA

“As we look forward to 2024, our ambition is to accelerate the growth of our strategic hubs in Switzerland, Hong Kong, and Abu Dhabi, and to continue our global expansion, building on all the successes we have laid down over the past years.”

Retail FX

Good For New Traders: Free Crypto Sign Up Bonus No Deposit Required

In cryptocurrency trading, where innovation knows no bounds and the stakes are as dynamic as the digital assets themselves, the concept of no-deposit bonuses comes off as an enticement both for old and new traders. 

Digital Assets

Binance announces banking triparty agreement

“We’ve developed a solution that ensures our institutional clients can optimize their collateral and cryptocurrency investments, modeled after the traditional markets’ trading conduct. We are in close discussions with an array of banking partners and institutional investors who have also expressed strong interest in participating.”

Digital Assets

CoinEx fined $2 million in Québec, Canada

“This new decision follows the important decision obtained in earlier this year and is part of the AMF’s offensive against crypto asset trading platforms operating illegally in Québec that have not entered into pre-registration undertakings.”

Industry News

FINRA fines BofA Securities $24 million for spoofing in US Treasuries

BofA Securities failed to detect spoofing due to inadequate supervisory systems. These systems were not equipped to identify manual spoofing by traders.

Retail FX

Belgium regulator blacklists FXP360, Appex Finance, and Wise-Markets

Belgium’s financial watchdog, the Financial Services and Markets Authority ‎‎(FSMA), has issued a warning against the unauthorized activities of multiple ‎ platforms that are offering investments in the country without ‎complying with Belgian financial legislation.‎

Digital Assets

MicroStrategy piles on Bitcoin, acquiring 0.90% of circulating supply

MicroStrategy, the world’s largest Bitcoin corporate holder, has further increased its holdings of the primary cryptocurrency. According to a recent filing, the company acquired an additional 16,130 bitcoins between November 1 and November 29, spending $593.3 million at an average price of $36,785 per bitcoin.

Display only crypto