Bitcoin swaps provider SolidX Partners has closed its $3 million seed financing round.
SolidX offers non-deliverable total return swaps on bitcoin settled in US Dollars, which use standard International Swaps and Derivatives Association, Inc. (“ISDA”) documentation.
The swaps enable investors to gain exposure to bitcoin using an instrument readily familiar and accessible to institutions.
The round’s lead investor is Liberty City Ventures and includes Jim Pallotta, Red Sea Ventures, Stanley Shopkorn and Red Swan Ventures.
Founded in early 2014, SolidX intends to use the seed-round funding to pursue growth opportunities.
“Our mission is to enable capital markets participation in the emerging bitcoin ecosystem. We are excited to provide institutions with financial instruments linked directly to bitcoin and blockchain innovations,” said CEO Daniel H. Gallancy. “Institutional investors have largely been locked out of the bitcoin marketplace given the mismatch between the bitcoin ecosystem and conventional capital markets’ clearing, settlement, custody and regulations. SolidX eliminates this incompatibility and allows for streamlined investing.”
“While many businesses in the digital finance space are focused on technology alone, SolidX is building the financial services plumbing for the ecosystem,” said firm President David S. Lehmann. “We are excited by the opportunities we see in the marketplace and are determined to build the next-generation financial services company.”