The investment arms of the multinational financial services firm and the second largest stock exchange in the world have invested in the digital asset platform.
ErisX, a Chicago-based derivatives exchange and clearing organization, has raised $27.5 million from investors, including Fidelity Investments and Nasdaq Ventures. The new platform offers fully regulated digital asset futures and spot contracts.
According to Reuters, users will be able to trade Bitcoin, Bitcoin Cash, Ethereum, and Litecoin on the spot. Futures markets are expected to open next year subject to regulatory approval.
Nasdaq confirmed its participation in the funding round without revealing the investment amount. Fidelity had not responded to the request for comment by Reuters.
According to Thomas Chippas, chief executive officer at the firm, the capital raised will be utilized to recruit staff and “build out our infrastructure and secure the appropriate steps are taken to develop a regulated market for digital assets.”
The firm closed its first round of funding back in October with some big names from the traditional capital markets as well as from the digital assets market space.
The firms that had participated in the first round of funding included DRW Venture Capital, Valor Equity Partners, TD Ameritrade (AMTD), Virtu Financial (VIRT), NEX Opportunities, Cboe Global Markets (CBOE), CTC Group Investments, Digital Currency Group, Nico Trading, Pantera Capital, Third Stone Partners, CMT Digital, Susquehanna International Group, XR Trading, C2 Capital Management, and ED&F Man Capital Markets Inc.
A Regulated Platform
The firm, which has an in-depth experience of delivering and operating a fully regulated marketplace, has filed for a Derivatives Clearing Organization (DCO) with the CFTC (U.S. Commodity Futures Trading Commission). The regulatory approval is expected in the first quarter of 2019.
ErisX plans to offer its services to institutional and retail traders with a regulated, liquid, and accessible offering. The team behind the platform comes with the experience of operating a regulated Designated Contract Market (DCM) for the past seven years.
With the fresh infusion of capital and backing from big names like Fidelity and Nasdaq, the firm should be able to create an impact in a market that is already witnessing a tough fight for market share between existing players like Coinbase, Circle, Binance, and Huobi.
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