According to a recent press release, a number of high profile venture capitalist firms have committed to fund ErisX, a project that is setting out to create a CFTC-regulated cryptocurency exchange that will offer spot trading and futures contracts for digital assets.
The list of investors who have pushed a combined $27.5 million into the project include Bitmain, ConsenSys, Fidelity Investments, NASDAQ Ventures and the Tokyo-based Monex Group.
Bitmain and ConsenSys are well-known within the cryptocurrency community whilst the other participants hail from more traditional finance backgrounds. NASDAQ Ventures is part of the world’s second largest stock exchange, US company Fidelity Investments manages around $7.2 trillion for clients and the Monex Group provide financial services with a focus on securities trading.
Driver of Significant Growth
The key to ErisX’s success will hinge to a large degree on gaining future approval from the Commodity Futures Trading Commission (CFTC) who also oversee the Chicago Mercantile Exchange (CME), the world’s largest derivative exchange.
Reuters quoted ErisX’s CEO Thomas Chippas as stating the investment will be used to “build out our infrastructure and secure the appropriate steps are taken to develop a regulated market for digital assets.”
Jihan Wu from Bitmain suggested “Many customers have been seeking various hedging solutions and would be happy to see US regulatory exchanges like ErisX provide spot and futures’ contracts in one platform.”
ErisX will be “an important step in continuing the convergence of digital and traditional asset classes in global institutional financial services,” said Joseph Lubin, CEO of ConsenSys, who believes the platform will “drive significant growth in institutional flows in both spot and futures digital asset markets in 2019.”
The recent big name contributors join several earlier seed investors on the same project such as DRW Venture Capital, Valor Equity Partners, CBOE Global Markets, CTC Group Investments, Digital Currency Group and Pantera Capital.