Coinbase CEO Backs Crypto Derivatives Exchange DydX

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21 December 2017

DYdX, an in-development decentralized exchange for cryptocurrency derivatives, has raised an undisclosed amount in a seed funding round.

In a Medium post, the startup said that the funding is a notable step in its vision to create the “first ever” decentralized derivatives exchange.

Led by Chris Dixon at Andreessen Horowitz (A16z) and Olaf Carlson-Wee at Polychain Capital, the round also saw participation from notable investors including Coinbase CEO Brian Armstrong, Abstract Ventures and U.S. entrepreneur Scott Belsky.

The company stated:

“We’re grateful to have the investor and advisor support of experienced entrepreneurs and operators who share our vision of building more open, transparent, and secure financial products through decentralization.”

The platform indicated that the new funds will be utilized to grow its workforce, including engineers and designers, as well as to develop a “regulation-compliant approach” in creating its platform.

The investment will also fund security audits aimed to ensure that dYdX is a safe platform for traders, it added.

Built on ethereum and 0x, the dYdX open protocol is powered by smart contracts. Currently in private beta, the platform is slated to launch on the main ethereum network in the middle of next year, the firm said.

Disclosure: CoinDesk is a subsidiary of Digital Currency Group, which has an ownership stake in Coinbase. 

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