Zero-Fee Institutional Liquidity Network Paradigm Raises $35M in Funding

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by Bhushan Akolkar · 2 min read
Zero-Fee Institutional Liquidity Network Paradigm Raises $35M in Funding
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The new funds will help Paradigm in its mission to plug the liquidity issues for institutional buyers and sellers for complex derivative trades taking place in the CeFi and DeFi markets. 

On Thursday, December 9, crypto firm Paradigm announced $35 million in Series A funding at the company valuations of $400 million. The recent funding round was co-led by Jump Capital and Alameda Ventures.

Series A Funding for Paradigm

The company seems to bridge the infrastructure gap between traditional finance and the crypto world. Paradigm also plays a role of a liquidity access point for institutional buyers and sellers for complex derivative trades taking place in the CeFi and DeFi markets.

Paradigm explains that for institutional players, on-demand liquidity can be a challenging task. Before Paradigm’s existence, institutional players had to maintain their own network of counterparty relationships to help source the liquidity. Also, this was particularly true for large and complex trades.

Furthermore, Paradigm also explains that there’s a lack of “standardized workflow automation tools” to facilitate the negotiation and execution of complex trades through a single atomic transaction.

During this Series A funding round, a total of 25 investors had participated. Some of the big names include Genesis Trading, Akuna Capital, Avon Ventures, Nexo, and Amber Group. Speaking post the current investment, Nexoexecutive Tatiana Metodieva said:

“Nexo aggregates and executes sizable trading volume on behalf of its global customer base, whereby market discovery and liquidity often pose concerns. Paradigm’s network of liquidity providers can alleviate a number of risks, and enhance market and price efficiency for large institutional players.”

Paradigm Serving 600 Institutions Worldwide

Paradigm has a massive customer base and caters its services to more than 600 institutions worldwide. Year-over-year, Paradigm’s trading volumes on the network have increased 1300% with $10 billion total volumes traded per month. Besides, 2021 has been a year of rapid growth for Paradigm as its headcount grew 3x with the company managing to capture a 30% market share with options volume globally.

The product suite offered by Paradigms includes complex order books focusing on spreads and combinations. It also focuses on spread matrices for futures, and loans rate curves. Interestingly, Paradigm also gives traders the flexibility to choose settlement venue when they want to settle their trades.

Besides, with Paradigm, traders can connect directly with institutional counterparties to get better than market prices for large-sized trades. Furthermore, using Paradigm’s workflow automation toolswill increase the trading precision while alleviating risks and reducing execution costs. The best thing about this is that the Paradigm platform is absolutely free to use.

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