A former vice president of Morgan Stanley raises $3.5 million to finance Tread.fi, an algorithmic bitcoin trading platform in its early stages

  • A pre-seed investment round of $3.5 million has been raised by Tread.fi.
  • Institutional investors can trade cryptocurrency on the startup’s algorithmic trading platform.

A former employee of Morgan Stanley founded Tread.fi, an algorithmic cryptocurrency trading platform, and it has raised $3.5 million in a pre-seed fundraising round.

According to Tread.fi on Wednesday, New Form Capital was the round’s leader, with participation from Aquanow, Varys Capital, GBV Capital, Thanefield Capital, and other investors. David Jeong, the founder and CEO of Tread.fi and a former vice president of quantitative research at Morgan Stanley, said that the transaction was structured as rolling simple agreements for future equity (SAFEs) with a token side letter, laying the groundwork for a follow-up round in Q1 2025.

Jeong declined to comment on the valuation but stated that the financing concluded in the first quarter of this year.

Tread.fi: What is it?

The main objective of Tread.fi, a business that offers infrastructure for cryptocurrency trading, is to serve institutional firms. It provides clients with advanced algorithms, a trading engine, and direct market access for spot, futures, and options.

According to Jeong, “Our objective is to provide the best algorithmic trading/execution platform that takes advantage of the advantages of blockchain technology.”

Jeong pointed out that Tread.fi’s direct competitors are Talos, CoinRoutes, and Elwood Technologies. According to Jeong, Tread.fi sets itself apart from the competition by charging a flat annual licensing price rather than a standard volume-based commission model, which sees expenses increase in tandem with trading activity. Additionally, clients can host the trading engine on their own servers for total trading anonymity.

According to Jeong, we provide a fully private trading engine. Since hedge funds’ primary business model revolves around the secrecy of trading methods and alphas, we sided with our customers by providing a trading engine that could operate discreetly and did away with all centralized access.

The buy-side hedge funds, market-making/over-the-counter trading desks, brokers, and other trading service providers seeking institutional algorithmic direct market access functionality are among Tread.fi’s clientele, according to Jeong, who declined to reveal the names of the clients.

Tread.fi intends to keep growing its staff and improving its trading platform now that it has additional funding. Tread.fi presently employs eight individuals in Bangkok and New York, and Jeong intends to add more personnel to handle sales, business development, and engineering tasks.

Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.

Author: Puskar Pande

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