November 30, 2021

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Cryptocurrencies: SheeldMarket raises $ 10 million

When an individual wants to buy or sell cryptocurrency, all he has to do is open an account on a specialized platform. When an institutional investor wants to do the same thing, it’s not the same story at all. To trade large volumes of cryptocurrency, you have to find enough liquidity and therefore open several accounts.

Actors have slipped into this juicy niche, like the French SheeldMarket. Founded in 2019, the start-up allows investment funds, banks, large companies and financial professionals to easily connect to the crypto universe.

“We simplify the whole journey with the opening of a single account, a deposit process and a source of reporting data. We distribute the flows on the market ourselves to obtain the best price ”, summarizes Oliver yates, co-founder and leader of the start-up, which takes a commission per transaction as well as fees for the preservation of cryptocurrencies.

Billions of dollars in cryptocurrency

SheeldMarket is connected to the ten most important platforms in the world, those that hold the most liquidity, such as Asians Binance and Huobi or even Americans Coinbase Pro and Kraken. These players also allow SheeldMarket to cover a wide range of cryptocurrencies, not just the bitcoin and ethereum stars.

The start-up does not communicate the names or the number of its customers, but ensures that some exchange a few million per month while others brew several billion per quarter. “We have a lot of hedge funds, active managers, mining companies [qui sécurisent et valident les transactions de cryptomonnaies, NDLR] », Says Oliver Yates.

About 70% of its customers are located in North America and Asia. No wonder, since European financial institutions are still very cautious on the issue of cryptocurrencies. However, France has created a legal framework for crypto players with mandatory registration as a “digital asset service provider” (PSAN) with the Financial Markets Authority (AMF). SheeldMarket was also one of the first players to obtain this Grail in October 2020.

$ 10 million raised in Series A

This stamp is also mandatory for foreign players who wish to operate in France. SheeldMarket also counts among its competitors the specialized players SFOX, Talos and especially Coinbase, which developed its own offer following the takeover of the broker Tagomi in 2020. But none of them has yet obtained the PSAN registration.

To make a place for itself, SheeldMarket has just completed a $ 10 million Series A fundraiser, one year after his round of funding of 1 million euros. This operation is led by British venture capital fund Atomico, which recently invested in Sorare and his fantasy football game using NFTs, these unique and traceable blockchain-based tokens. The Semantic fund and business angels Pascal Gauthier (boss of Ledger) and Alexis Bonillo (co-founder of Zenly) are entering the capital alongside existing investors (Axeleo Capital, Draper Dragon, Kima Ventures and Acequia Capital).

Towards decentralized finance

This new funding will allow the start-up to develop other products related to cryptocurrencies. In short: to do decentralized finance, more commonly called “DeFi”. This ecosystem brings together blockchain-based financial products and services, such as “staking” which consists of immobilizing cryptos in order to obtain interest.

“We believe that in seven or eight years, the technological financial infrastructure will be on ‘DeFi’. This is why we want to be the API that will allow institutional investors to connect to decentralized finance ”, indicates the leader. The “DeFi” market today weighs nearly $ 90 billion, or 350% more than a year ago.