One of the biggest problems plaguing the decentralized finance (DeFi) industry is liquidity fragmentation across different chains. Unfortunately, the solution to the liquidity fragmentation problem is not another liquidity-hungry protocol but a cross-chain liquidity aggregator. Now, one fintech startup is out to solve this problem of continuous liquidity fragmentation.
Enter Blockfills, a Chicago-based digital asset trading and financial tech startup dedicated to the provision of bespoke end-to-end solutions to participants in the cryptocurrency market worldwide. Blockfills solves the fragmented liquidity problems through its aggregation and matching algorithms and provide an end-to-end software suite that simplifies all aspects of the trade lifecycle for institutions.
Today, BlockFills announced it has closed $37 million in Series A funding to accelerate its’ global expansion and fuel technology launches aimed at bringing traditional financial institutions into the digital asset sector. The round was led by institutional investors, including Susquehanna Private Equity Investments LLLP, CME Ventures, Simplex Ventures, C6E, Nexo Inc., and several other institutional investors and funds.
This is the second multimillion-dollar funding round since the company’s founding four years ago. To date, BlockFills has raised a total of $44 million from institutional investors.
Founded in 2018 by CEO Nick Hammer, Blockfills is an institutional digital asset liquidity provider. The startup has built and deployed a cutting-edge multi-asset technology platform that solves major liquidity fragmentation problems in the marketplace. The platform provides price discovery, price aggregation, electronic order matching, smart order routing, and trade reconciliation solutions for institutions in the digital spot, derivatives, and lending markets.
In addition, BlockFills provides software-as-a-service (SaaS) solutions that simplify all aspects of the trade lifecycle for institutions in the sector.
The company’s middle office products, together with its recently launched trading platform, Phoenix, make BlockFills a one-stop shop for banks, brokerages, asset managers, corporations, and other institutions who wish to launch or scale a client-facing digital asset business.
“The successful close of our Series A funding round will help ensure that BlockFills and our technology platforms are industry-leading and continue to meet the demand for end-to-end solutions that help institutions safely and efficiently engage digital asset markets,” said Nick Hammer, co-founder and CEO of BlockFills. “We are grateful to our investors and proud to provide value for our clients by providing digital asset market solutions that are unmatched in the industry. The future looks bright for BlockFills, and we are just getting started.”
Dean Carlson, Head of Digital Asset Investments at Susquehanna Private Equity Investments, said “since its inception, BlockFills has been an innovator in the digital asset sector providing trading and liquidity solutions to crypto native firms. Their experience in the crypto sector and traditional financial markets coupled with their pioneering financial technology solutions set the company apart. We are excited to support BlockFills’ vision of being a one-stop partner for global institutions looking to confidently enter into digital asset trading and investing.”
BlockFills plans to use the latest fund to scale new verticals to accelerate its position in the market. Prospective verticals include support for digital banks and asset managers, trading organizations demanding multi-currency solutions, and companies with exposure to cryptocurrency prices who seek assistance in implementing efficient hedging and risk mitigation strategies.
BlockFills also plans to expand and evolve its technology platforms to provide more advanced solutions for the hedge fund and asset management community, a sector in which the company saw record levels of onboarding in 2021. Already a leading liquidity provider in crypto options globally, BlockFills plans to dramatically expand support for this industry’s unique needs – bespoke derivatives products and related technologies that simplify regulatory and reporting requirements.
BlockFills will also use the funding to expand as a leading service provider to global cryptocurrency miners. Global miners have tapped BlockFills for approximately $150 million in capital for expansion since August 2020 and the company has rapidly become a leading service provider in financing mining equipment. BlockFills also offers bespoke asset management solutions, efficient mining pool technology, and professional trading support to help these key clients navigate rapidly moving cryptocurrency markets.
