The LN Markets cryptocurrency derivatives exchange, built on Bitcoin’s second-layer protocol Lightning Network (LN), announced the closing of a pre-seed round of funding with participants Bitfinex, Fulgur Ventures and Arcane Crypto.
⚡️⚡️⚡️⚡️ @bitfinex and co. investing in the right projects to support #LightningNetwork ⚡️ expansion!#Bitcoin Layer 2 is the way https://t.co/Jb06UXyLWy
— Paolo Ardoino (@paoloardoino) September 8, 2020
The exchange did not disclose the amount raised. Arcane Crypto said that after the investment the company became the owner of 7.14% of the platform’s shares.
Traders in the LN Markets app execute trades directly from their LN wallet without needing to rely on the exchange as custodian.
“We conducted a demonstration with one of the largest fund managers in France, and for them it looked like magic. Settlement for a traditional financial instrument can take up to three days. With Bitcoin—from one hour to one day. But with Lightning it happens instantly,” noted LN Markets co-founder Ромен Руфаэль.
The exchange said that since the alpha version of the app launched in March this year, trading volume has exceeded $10 million, despite trading limits of 0.01 BTC per trader.
The platform set the limit to avoid the need for KYC procedures. Under EU rules, this is not required for transactions up to €50.
Earlier in September, the aggregate value of bitcoins in the Lightning Network reached a new high.
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