On June 22, CrossTower announced that it had raised $6 million in a new round of seed funding led by Gerard Lopez, a former WIX and Skype board member.
According to the announcement, the investment will support the expansion of the New York-based company’s new multi-asset trading platform to leverage „historic“ institutional investments in digital asset markets.
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CrossTower’s objectives after the funding round
Kapil Rathi, co-founder and CEO of CrossTower, told Cointelegraph some of the company’s goals after raising the initial round of funding:
„We have an extremely active order book and tight margins that have attracted quite a bit of cash. The closing of our financing round came at just the right time as we developed our sales, fulfillment, development and customer service teams. We are now well positioned to continue building our platform to forge new relationships and strategic partnerships to offer a wider range of asset and service coverage.
As for the current environment in the crypto industry, Kristin Boggiano, co-founder and president of Bitcoin Evolution, believes that there is strong and growing momentum in the adoption of crypto technology within the financial industry, „so we are excited to be a new and growing player in this space.
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Rathi commented on the significant needs that CrossTower customers are currently facing, which the initial financing could address:
„One of the most urgent needs our customers are facing is a cost-effective way to exchange cryptosystems, as many of the rates in today’s markets are excessive. Our first industry pricing model ‚Get Paid to Trade‘ or Taker-Maker turns the current scenario upside down by charging and discounting customers‘ costs based on the value of the principal amount of a transaction. We are very excited about this fee structure because it is attracting traders to help us create liquidity while accelerating the growth of our institutional and active trader client bases.