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.

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