Rails, a self-custodial crypto exchange that allows users to trade perpetuals while maintaining self-custody, announced a $6.2 million seed round led by Slow Ventures, CMCC Global, Round13 Capital, and Quantstamp.
Rails’ proprietary trading engine combines advanced matching capabilities with a user-friendly interface and a set of trading tools designed for sophisticated traders.
This combination enables trades without compromising usability.
FTX left a massive void in the crypto market, “diminishing trader confidence in centralized exchanges.”
Still, the demand for crypto derivatives trading “is imminent as the market is surging.”
Recognizing the need for a reliable alternative, Rails aims “to fill this gap by focusing on protecting user funds and securing user trust through transparent self-custody on the blockchain.”
Sam Lessin, General Partner at Slow Ventures, said:
“I’ve looked at dozens of companies trying to replace FTX, and Rails has built the best solution from a product and technical standpoint, complemented by a highly experienced management team. Rails is poised to disrupt the crypto derivatives trading industry, providing traders with the tools and security they need to succeed in today’s fast-paced markets.”
Satraj Bambra, Co-Founder and CEO of Rails, said:
“I was a power user of FTX, both professionally and personally. I knew that a replacement was desperately needed but also recognized that we must ensure the trust, security, and safety of our users’ funds through self-custody. We utilize a centralized order book to drive the best execution combined with a decentralized solution for self-custody on the blockchain. This ensures that traders always have full control over their funds, without sacrificing speed or efficiency.”
The technical founding team behind Rails is “comprised of seasoned entrepreneurs with decades of experience, having previously founded five companies, all with successful exits.”
Satraj Bambra, co-founder & CEO of Rails, brings “a wealth of product and trading experience as a Managing Partner and CIO at Round13 Capital, Canada’s largest crypto-native fund.”
Megha Bambra, co-founder & CTO, was “the former VP of Engineering at Grindr and CTO at StellarX, with extensive technical experience in full-stack software engineering.”
Previously, Satraj and Megha built and “sold one of the earliest decentralized exchanges. Rick Marini, co-founder, President & COO, brings decades of operating expertise as a successful 3-time founder, and highly accomplished Silicon Valley investor, with a strong track record in crypto investments since 2014. Rick recently took Grindr public on the NYSE, as COO, with a market cap of $2 billion.”