A $72 million Series B fundraising round for digital asset market creator Keyrock was spearheaded by cryptocurrency payments startup Ripple. For the past three years, Ripple has also been a significant client for the business.
The deal, which concluded in mid-September, included participation from the venture capital companies Six Fintech Ventures and Middlegame Ventures.
Kevin de Patoul, the CEO of Keyrock, declined to disclose the valuation but said that it had increased significantly. In October 2020, the company secured €4.3 million in Series A investment.
Platforms like exchanges receive a buy-and-sell price for an asset from market makers like Keyock. Typically, they generate income by selling assets for greater prices than they paid for them, pocketing the spread (or difference) between the two.
For a predetermined monthly price, the company also offers its market-making proposal as a service to clients. This entails supplying liquidity to markets that haven’t yet seen trade volumes high enough to generate a profit for the market maker.
Kevin also explained:
A big chunk of our vision is to provide liquidity on the markets that need it the most. On those markets, the ability to generate revenue on the spread is very limited, so we work with a fee structure [to provide liquidity].
The company plans to use the money to expand its market making-as-a-service proposition, as well as put more of an emphasis on options and increase over-the-counter activities.
Related Reading | The Emergence Of Bitcoin (BTC) Shrimps
Similar to its rivals, Keyrock makes investments in businesses and funds. Recently, it supported the $150 million new fund from LeadBlock Partners. Former Goldman Sachs workers founded the European cryptocurrency startup fund known as LeadBlock.
However, Keyrock’s rise comes at a difficult moment for its rivals. Recently, GSR and Wintermute were both investigated for potential FTX exposure but eventually determined that their exposure was tolerable.
Comments (No)