Crypto trading platform CrossTower announced Monday it raised $6 million in a seed funding round led by European tech investor Gerard Lopez.
The firm’s co-founder and president, Kristin Boggiano, said CrossTower was launched at a time of change in the financial markets.
“Jurisdictions and governments around the world are increasingly embracing crypto finance to avail more efficient payment, trading and investment services,” she said.
She added that while the firm is not chasing a specific volume of users, its mission is to make investing in digital assets more mainstream.
“While CrossTower aims at a wide market, the institutional-ready approach is one of the founders’ most appealing and distinguishing strengths,” said Gerard Lopez, speaking about what attracted him towards making an investment in CrossTower’s platform.
CrossTower co-founder and CEO Kapil Rathi said what distinguishes the firm’s trading platform from all the others on the market was its “get paid to trade” pricing model. According to Rathi, the model upsets the status quo by offering rebates to takers and charging a nominal fee to market makers.
“This fee structure is designed to draw traders to the system as we will pay takers of liquidity 1 bps of the value of each trade,” Rathi said.
In his view, the model can also provide substantial liquidity to market makers.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.