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SIBEX, a Switzerland-based startup that leverages blockchain technology to enable peer-to-peer (P2P) crypto trading, has secured CHF 1.78 million (~$1.8 million) in its seed funding round.
The round drew support from China-based Fenbushi Capital; SIX, the Swiss financial infrastructure provider; and specialist blockchain investment Accomplice VC, among others.
SIBEX is a developer of a P2P protocol that helps create new arbitrage opportunities for institutional traders and overcome the issues that exist with current over-the-counter (OTC) markets. The SIBEX P2P protocol and the SIBEX client leverage blockchain technology to eliminate intermediaries and enable professional traders to trade leading crypto-assets with one another directly.
According to a press release shared with TokenPost, traders can choose between assets including Bitcoin, Ethereum, USDT, and ERC20 tokens and use the SIBEX client to trade them peer to peer.
SIBEX explained that its protocol solves issues such as front-running by providing an institutional-grade dark pool for digital asset procurement and liquidation and enabling cross-chain transactions. Front-running is a prohibited practice in which those with advance knowledge of a large buy or sell order can manipulate the price of the asset and make a profit.
Furthermore, by enabling traders to maintain custody of their assets throughout the trade settlement, SIBEX prevents such occurrences and increases market integrity.
“We’re reaching a tipping point for institutional investor interest in digital assets trading,” Bo Shen, Founding Partner, Fenbushi Capital, said. “The right infrastructure for securely and privately trading large block orders is a vital piece of the puzzle, and the SIBEX protocol is the perfect solution to fill that space.”
Daniel Haudenschild, CEO of SIBEX and the President of the Crypto Valley Association (CVA), noted that the current lack of infrastructure for OTC trades can present issues that alienate institutional investors who are used to a certain quality of service.
“SIBEX is committed to solving the problems that exist while also exposing professional traders to a new world of trading strategies and opportunities. The support of Fenbushi Capital, SIX, Accomplice, and our other investment partners is invaluable in helping us to achieve this goal,” he said.
SIBEX emphasized that it is also a solution for OTC trading in commodities like oil and gold once trading in digital asset commodities grows.
“Before OTC trading of digital assets can really take off and reach its full potential, institutions that are interested in entering the space need assurances of trust and stability in the peer-to-peer platform,” Rob Shavell, Partner, Accomplice VC, noted. “SIBEX is taking the lead in making the vital shift to on-chain settlement in the ecosystem.”
