Crypto market maker CyberX has raised $15 million in a strategic investment from Foresight Ventures, a crypto venture capital firm with about $400 million in assets under management.
CyberX will use the funds to expand its teams in Asia and North America, add more integrations with exchanges and decentralized finance (DeFi) protocols and build out its trading infrastructure. Decentralized finance refers to financial transactions carried out on a blockchain without the use of traditional middlemen.
Market makers are essentially trading firms utilizing their own capital to bet on tokens and take the other side of trades on exchanges when other traders are trying to buy in or out quickly. The collapse of multibillion-dollar crypto exchange FTX raised questions about the general liquidity of the industry, and market makers came under the spotlight.
CyberX’s liquidity solutions include algorithmic market making in spot and derivatives markets, futures options, structured products, over-the-counter services and DeFi protocols.
"Blockchain technology has transformed the way value is exchanged in [traditional finance]. As a crypto market maker, we aim to connect assets efficiently and transparently with our proprietary technology to provide liquidity across trading venues, DeFi protocols, and [non-fungible token] marketplaces," said CyberX CEO Hao Wang in a statement.
CyberX was founded in 2016 by a group of Wall Street veterans and now has offices in the U.S., Canada, Hong Kong and Singapore. The CyberX liquidity network has grown its daily trading volume to $400 million, which includes more than 30 venues and 5,000 tokens.
The firm said its trading volume has increased nearly 10 times in the past year, with DeFi represented around 40% of its trading activities.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish group, owner of Bullish, a regulated, institutional digital assets exchange. Bullish group is majority owned by Block.one; both groups 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, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.