Chicago-headquartered derivatives exchange and clearing organization ErisX has generated $27.5 million from investors, including Nasdaq Ventures and Fidelity Investments. The new platform provides “fully regulated digital asset futures and spot contracts.”
As per Reuters, users can trade Litecoin, Ethereum, Bitcoin, and Bitcoin Cash on the spot. Futures markets will launch in 2019 subject to regulatory approval.
Nasdaq confirmed its funding round participation but did not disclose the investment amount. Fidelity had not answered to Reuters’ request for comment.
ErisX CEO Thomas Chippas said the capital raised will be used to hire staff as well as “build out our infrastructure and secure the appropriate steps are taken to develop a regulated market for digital assets.”
In October, the company closed its first funding round with some prominent names from both the digital assets market space and traditional capital markets.
ED&F Man Capital Markets Inc, C2 Capital Management, XR Trading, CMT Digital, Third Stone Partners, Susquehanna International Group, Pantera Capital, Nico Trading, Digital Currency Group, Virtu Financial (VIRT), TD Ameritrade (AMTD), Valor Equity Partners, DRW Venture Capital, CTC Group Investments, Cboe Global Markets (CBOE), and NEX Opportunities participated in the first funding round.
The company boasts an in-depth experience in delivering and operating a wholly regulated marketplace. It filed for a Derivatives Clearing Organization (DCO) with the US Commodity Futures Trading Commission (CFTC). The regulatory approval is expected in Q1 of next year.
ErisX seeks to cater to retail and institutional traders with a liquid, regulated, and accessible offering. The group behind the platform has operated a regulated Designated Contract Market (DCM) for the last seven years.
With new capital injection and backing from Nasdaq and Fidelity, ErisX should make an impact in a market that sees a tough fight for market share between players such as Huobi, Binance, Coinbase, and Circle.