D2X, a Netherlands-based crypto derivatives exchange for institutions, has secured a $10 million Series A led by Point72 Ventures.
Other participants in the investment round “included GSR Markets and existing investors Tioga Capital, Fortino Capital, Jabre Capital Partners, Picus Capital, and TRGC.”
The investment comes as D2X reaches “a pivotal milestone by becoming the first entity in the EU to obtain a MiFID MTF license for crypto derivatives.”
Granted by the Dutch Authority for Financial Markets (AFM), the license “authorizes D2X to operate a regulated trading venue for cash-settled crypto futures and options.”
Set to launch in Q2 this year, D2X will be “the first in Europe to list regulated crypto derivatives 7 days a week.”
Through a partnership with “a Tier-1 EU credit institution, the trading venue facilitates off-exchange collateral accounts.”
By bringing together features from traditional finance and crypto, D2X meets “the growing institutional demand for digital assets, reinforced by connectivity from Talos and liquidity from market-makers, such as Flow Traders.”
With the support of prominent investors and a first-mover advantage in the region, D2X is well-positioned to “bridge the gap between digital assets and traditional finance for institutions.”
The MiFID II licence will also allow D2X to operate under the upcoming MiCA regime.
Frederic Colette, incoming Chief Executive Officer at D2X, commented:
“With the approval of our MiFID licence, we are aiming to set a new benchmark for reliability in the digital assets space. D2X is paving the way for financial institutions to safely enter the crypto derivatives market, and we are dedicated to ensuring their security and success every step of the way.”
Theodore Rozencwajg, Co-Founder & Chief Commercial Officer at D2X commented:
“Financial institutions face a tough choice when deciding where to trade. Regulated trading venues have limitations in trading hours and capital efficiency while crypto-native exchanges present credit risk and remain largely unregulated. D2X solves this and we are thrilled to launch later this year – a pivotal moment in our ambition to pioneer next-generation market infrastructure.”
Adam K. Carson, Partner at Point72 Ventures commented:
“Point72 Ventures is thrilled to support D2X on its mission to revolutionise the crypto derivatives market. Their dedication to providing a regulated trading venue for institutions, coupled with their innovative approach, has the potential to make transformative changes in the industry. We’re excited to be part of this journey.”
As noted in the update, D2X is launching “the regulated (MiFID II) crypto futures & options trading venue out of the Netherlands to facilitate the institutional adoption of the asset class. Operational 7-days-a-week, D2X facilitates off-exchange collateral accounts in partnership with a Tier-1 EU credit institution.”
The company aims to “bridge the gap between traditional finance and the digital asset ecosystem. Its initial product listing is set to feature cash-settled EUR-denominated BTC and ETH derivatives.”