Arbelos Markets, a leading crypto liquidity provider, has successfully raised $28 million in a seed funding and debt financing round, signaling a significant milestone amidst the burgeoning interest from institutional investors in the crypto derivatives space.

Led by Dragonfly Capital, the funding round saw participation from prominent investors such as Circle Ventures, Aevo, Polygon, Deribit, Immutable, and others. The infusion of capital will fuel Arbelos Markets' ambitious growth plans, including the enhancement of its quant trading infrastructure, expansion of its team, and diversification of its product portfolio and market presence.

Joshua Lim, Co-founder and CEO of Arbelos Markets, emphasized the company's mission to revolutionize the trading landscape by replacing outdated systems with a state-of-the-art infrastructure built on provable trust. Lim, a former trader at Galaxy and Genesis, along with Shiliang Tang, former CIO at digital asset hedge fund LedgerPrime, founded Arbelos Markets in 2023. Leveraging their extensive experience in both cryptocurrency and traditional finance, they aim to establish Arbelos as a premier principal dealer in the crypto market.

The timing of Arbelos Markets' fundraising is particularly noteworthy, as institutional interest in crypto derivatives has surged alongside the robust recovery of the digital asset market this year. In April 2024, the combined open interest for bitcoin futures and perpetual swaps soared to a record $29 billion, marking a remarkable 160% increase compared to the previous year, according to data from The Block.

Arbelos Markets' strategic positioning as a trusted liquidity provider and principal dealer aligns perfectly with the evolving needs of institutional investors seeking exposure to crypto derivatives. With its proprietary Transparency Engine developed by seasoned traders and quants, Arbelos is well-equipped to navigate the complexities of the crypto market and deliver unparalleled value to its clients.

As the crypto derivatives market continues to mature and attract greater institutional participation, Arbelos Markets is poised to play a pivotal role in shaping its trajectory and driving innovation in the space. The successful completion of its latest funding round underscores investor confidence in Arbelos' vision and capabilities, setting the stage for continued growth and success in the dynamic world of digital assets.