Cryptocurrency OTC Platform Bridgeport recently completed a 3.2 million seed round financing led by further ventures, along with several other venture capital companies.
According to an official press release, the commercial crypto platform plans to use funds generated from seed round finance to develop and expand teams to meet the increased institutional demand for infrastructure that reduces exposure to exchanges.
The company is proud to serve as a bridge that connects investors with encryption, eliminating the need to deposit funds on an exchange for prior facility needs. Additionally, it also provides solutions to credit and settlement risks by coordinating real-time messaging and collateral management.
The seed round was led by a further venture from an Abu Dhabi-based venture capital firm. The round was supported by representatives from major venture capital and Web3-focused companies, including Virtu, XBTO, Blockchain Founders Fund, Fun Fair Ventures and Humla Ventures.
Nirup Ramalingam’s Bridgeport CEO said the $3.2 million seed funding round marks a “major milestone” of the company’s journey to provide solutions to the capital inefficiency and risk associated with transportation, particularly in the crypto space.
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“We are grateful to investors who have believed in their vision to build an institutional coordinating layer for settlements outside the exchange of codes that will better connect ecosystems,” Ramalingham said.
Mohamed Hamdy of Mohamed Hamdy, managing partner of Mother Ventures, explained why the venture capital company decided to invest in a middleware crypto platform. He believes Bridgeport’s mission to solve the problems and risks posed by preschool and credit fragmentation is essential to the future of the crypto industry as it sees an increase in institutional benefits.
“We believe that Bridgeport’s infrastructure is the basis for the next stage in the evolution of crypto market structure,” Hamdi said in a statement.
OTC platforms like Bridgeport, once considered backdoor options to solve off-chain, have moved to solutions from traditional financial institutions such as banks and businesses that try to dabble with crypto without putting money into centralized exchanges.
Keeping money in exchange is often considered a risk by institutional investors trying to play it safely. Abuse of crypto exchanges such as Bybit Hack, DMM Bitcoin (BTC), and Wazirx has shown how realistic the risks of investors keeping large amounts of money on the exchange are.
In fact, after Bybit Hack, security analysts predicted that OTC services could see a massive freeze wave to prevent the movement of stolen funds.
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