Paradigm – an institutional liquidity network for crypto derivatives traders – recently closed a $35 million Series A funding round. Co-led by Alameda Ventures and Jump Capital, this round places the company’s value at $400 million.

Paradigm’s Role

According to a recent statement, over 25 other investors participated in the company’s most recent funding round. These include Nexo, Genesis Trading, Babel Finance, Dragonfly Capital, Digital Currency Group, and others.

Paradigm is meant to provide a bridge for institutional investors between traditional finance and the crypto economy. It allows them to trade complex derivatives products in both Cefi and Defi ecosystems.

The company has achieved remarkable growth, having increased trading volume over its network by 1300% year-over-year. That’s over $10 billion of value traded per month, working with over 600 institutions. It currently accounts for 30% of global options volume.

Ramnik Arora – Head of Product at FTX – said Paradigm will “play an increasingly important role” in the trading ecosystem, as the market matures.

“For every large or complex trade, the trader needs to ping multiple chats, get quotes and process them manually, settle them on a one-off basis. Paradigm makes this workflow seamless for complex derivatives transactions delivering pricing efficiency, low execution and settlement risk.”

FTX CEO Sam Bankman Fried is also the founder of Alameda, one of the major investors of this round. Recently, Alameda helped launch Defi’s very first syndicated loan product (a loan backed by multiple lenders).

“At Paradigm, we are focused on establishing a robust network before monetizing,” said Anand Gomes – Co-founder and CEO of Paradigm.  “This funding round allows us to continue building out our network of institutional traders, CeFi exchanges, and DeFi protocols, while also enhancing our 24/7 customer support, and expanding upon our current product offerings to better accommodate the needs of our clients.”

Paradigm’s Venture Fund

Last month, Paradigm announced a $2.5 billion venture fund dedicated to crypto companies and protocols. This was the biggest venture fund seen in the crypto industry to date, breaking the previous $2.2 billion record set by Andreessen Horowitz in June.

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