Crypto derivatives platform Seed CX will be axing its exchange arm to focus solely on settlements.
"As a start up [sic], you inherently gravitate towards opportunity and that often leads you to take on more, rather than less. However, it is equally important to begin to refine the business focus as certain opportunities develop into a 'real venture growth business,'" CEO Edward Woodford wrote in a Medium post.
According to Seed CX, Zero Hash now accounts for 95% of its revenue, leading to the decision to pivot the company's focus as it aims to become the leading provider of "digital asset settlement infrastructure."
As part of the shift, the company will concentrate on two main areas for clients: regulation and technicals.
"Through our API, platforms can own the complete client experience whilst not taking on any regulatory overhead. This is similar to how 'Banking as a Service' (BAAS) provides access to traditional rails," the company wrote.
On the technical side, Zero Hash will enable groups to submit two-sided transactions, depending on the product (spot, derivatives or loans) and will handle end-to-end complexities with a particular blockchain to achieve "greater capital efficiency through netting."
The firm also teased some fundraising news.
"We are on course to profitability, are well capitalized and will be announcing an additional round of fundraising this month, with investors including Bain Capital. We have settled close to a billion dollars notional in the past months,"
In September 2018, Seed CX announced a $15 million Series B led by Bain Capital.
The startup expanded into Europe in February of this year with the addition of eight order books for its spot-trading market. That will now be closed as the company looks towards settlements in the derivatives and spot markets.
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