X-Margin, which offers credit scoring and risk monitoring services to financial institutions, has secured $8m in its Series A funding round.
Major backers of the investment were Coinbase Ventures, HashKey Capital and Spartan Group. Other commitments came from Bixin Ventures, Miranda Ventures, Gemini, Primitive Ventures and Kenetic Capital.
Also joining the round were previous X-Margin investors Alameda Research Ventures, CMT Digital, CoinShares, DCG, GSR and Polychain as well as some of its clients, including CMS Holdings, Wintermute, MGNR, Dunamis Trading, Pirata Capital, and Kronos Research.
Founded in 2019, the FinTech company claims to have facilitated over $220m in credit extended to institutions trading digital assets through direct lending and decentralised lending platforms. Its claims its risk engine currently monitors $2bn of trading portfolio assets.
The FinTech company helps lenders of all sizes, including digital assets, family offices, trading venues and DeFi protocols. X-Margin Credit empowers lenders and creditworthy borrowers to connect, enables users to monitor real-time risk and trigger margin calls if the value of a borrower’s net trading position falls out of agreed parameters.
Borrowers can establish their creditworthiness without needing to reveal their sensitive portfolio information.
X-Margin founder and CEO Darshan Vaidya said, “We’re thrilled that such high calibre investors share our vision for transforming credit for institutions trading digital assets. We believe a provably neutral risk engine can scale automated credit extension, giving any lending pool of capital visibility and control over the credit extended.”
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