US-based crypto trading service FalconX emerged from stealth on Wednesday with $17m of funding from investors including Coinbase Ventures, the corporate venturing arm of digital currency exchange Coinbase.
Fenbushi Capital, the blockchain-focused investment arm of automotive components manufacturer Wanxiang Holdings, contributed to the round, as did Avon Ventures, a venture capital firm affiliate of financial services group Fidelity Investments.
VC firms Accel, Flybridge and Lightspeed Venture Partners rounded off the transaction, participating alongside undisclosed additional investors.
Founded in 2018, FalconX runs a digital asset trading exchange that relies on data science to price each cryptocurrency at a stable rate for a set period, meaning clients are able to avoid sharp fluctuations created by fraudulent transactions.
FalconX primarily serves institutional investors and generates revenues from trading fees, either levied as a standalone charge or else included within crypto prices. It claims to have transacted assets worth more than $7bn during 10 months of operations.
The technology incorporates internal blockchain analytics in an effort to thwart money laundering and tag currency accounts associated with dark web or terrorist activities.
FalconX will put some of the capital into its product roadmap while also investing in its infrastructure to cope with growing demand.