The New York-based cryptocurrency exchange announced it had raised $6 million in a seed funding round led by a former board member of Skype.
Cryptocurrency exchange CrossTower announced on June 22 it had raised $6 million in a new seed funding round led by Gerard Lopez, a former board member of WIX and Skype.
According to the announcement, the investment will support the expansion of the NY-based firm’s new multi-asset trading platform, aiming to take advantage of “historic” institutional inflows into the digital asset markets.
CrossTower’s goals after the funding round
Kapil Rathi, co-founder and CEO of CrossTower, told Cointelegraph some of the company’s targets after raising the seed funding round:
“We have an extremely active order book and tight spreads that have attracted so much liquidity. The close of our financing round was well-timed as we build out our sales, compliance, development and client care teams. We’re now well-positioned to further build out our platform to forge new relationships and strategic partnerships to offer a broader range of asset coverage and services.”
Regarding the current crypto industry’s environment, Kristin Boggiano, CrossTower’s co-founder and president, believes that there’s strong and growing momentum in the adoption of crypto within the financial industry, “which is why we’re excited to be a new and growing player in this space.”
Rathi commented about the significant needs that CrossTower’s customers are facing off currently, and that seed funding could solve:
“One of the most acute needs our customers face is a cost-effective way to trade crypto as many of the fees in the markets today are prohibitive. Our industry-first ‘Get Paid to Trade’/Taker-Maker pricing model flips the status quo by charging and rebating customer fees based on the value of the principal amount of a trade. We’re very excited about this fee structure, because it’s attracting traders to help us build liquidity while accelerating the growth of our institutional and active trader customer bases.”
Plans for the near future
According to the company, there are plans to add additional assets to CrossTower’s trading instruments in the near-term, and the funding round will help achieve it. Boggiano added:
“We plan to introduce additional fiat-to-crypto assets and services, such as derivatives along with additional order types. We also plan to rollout additional services across the trade lifecycle, including custody and margin.”
On additional plans within the company, Rathi told Cointelegraph that there is a range of projects in the works, including building organizations ranks and strengthening regulatory safeguards.
Recently, CrossTower joined the Crypto Rating Council as its newest member, alongside 11 other industry companies.
via cointelgraph.com
