A platform run by former State Street executives that will allow institutional investors to acquire a wide variety of crypto assets, has raised a $five million seed round.
Led by Wicklow Capital with the aid of Digital Currency Group, Sierra Ventures, Clocktower Ventures and ThirdStream Partners, the round will be utilised to build out Omniex’s suite of tools for acquiring and promoting bitcoin, ether and any other crypto asset deemed a commodity.
According to the former director of State Street’s emerging technologies lab, now Omniex chief executive, Hu Liang, the startup is seeking to assist investors acquire and sell large amounts of crypto assets by providing a enormous pool of liquidity.
Liang revealed new particulars about its founding group like that two other State Street executives have joined Omniex as co-founders: Kamal Mokeddem, who is now head of technology, and John Burnett, who has signed up as the startup’s head of enterprise development.
The new investment will be utilized to continue to round out the startup’s team. According to Liang, Omniex will add four far more individuals, mostly developers, quickly.
Burnett told CoinDesk:
“Ultimately, we want to be geared up so that we have the full solution set in marketplace by the end of the year, that is developed for the initial time as an institutional investment and trading platform.”
But while the finish-of-year deadline could seem tight, the co-founders’ backgrounds at State Street must assist them lure investors with “good connections in the capital markets space,” as Liang mentioned was Omniex’s concentrate.
The platform, referred to as Omniex Portfolio Edge, will initially cater largely to quant hedge funds and specialty crypto funds that focus on cryptocurrencies with massive market place caps that have been deemed commodities by U.S. regulators.
At launch, the founders hope to have completed their first set of products serving each front and back workplace operations for trading crypto assets, which includes a portfolio management platform, danger analytics tools and connectivity to exchanges, voice brokers and electronic streaming engines.
Some of the seed cash will also be used for building goods for the rest of the trading lifecycle, like fund managers, market makers, exchanges, custodians, fund accountants and on-line cryptocurrency vaults.
“We’re not a industry maker ourselves, we’re not an exchange ourselves. So we’re hunting for anybody who is adding value to the current ecosystem by bringing in either liquidity or storage mechanisms or regulated activities,” Liang said, adding:
“We’re the infrastructure for the crypto ecosystem.”
That infrastructure is some thing some in the cryptocurrency space consider is the important to enabling what Digital Currency Group founder Barry Silbert called the “next wave of institutional capital,” in interview with CoinDesk.
“In order to participate in these markets in a meaningful way, these people will require “institutional grade” cryptocurrency trading tools,” Silbert mentioned.
And even though the platform will start off limited to cryptocurrencies with huge marketplace caps, the co-founders would also like to expand the infrastructure to help smaller assets, such as tokens sold throughout initial coin offerings (ICOs).
It’s not all that surprising, because ICOs are the hot topic in the crypto planet, with numerous thinking the new fundraising mechanism could quickly turn out to be commonplace. But at the moment, Omniex doesn’t have the regulatory approval to accept ICO tokens that may currently be or someday be categorized and regulated as securities.
“For this to be an institutional class, we want this to be a $1 trillion, $two trillion, $10 trillion industry. We’re here to grow that ecosystem.”
Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Omniex and commented on this story.
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Published at Tue, 28 Nov 2017 05:01:45 +0000