Crypto Exchange ErisX Draws Major Investments From Fidelity and Nasdaq

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By Maud Guon Dec 06, 2018
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New Wall Street-backed crypto exchange ErisX has raised $27.5m from Fidelity, Nasdaq Ventures and other investors.

Chicago-based crypto exchange ErisX has secured $27.5m in a new funding round, backed by Wall Street giants Fidelity and Nasdaq, according to a Reuters report on December 4.

ErisX, previously slated by Finance Magnates as the next big player in the race for the “herd of institutional investors” headed directly for the crypto space, has been tipped to give Bakkt a run for its money.

As Reuters put it, ErisX will allow investors to “trade the cryptocurrencies Bitcoin, Litecoin and Ether on spot and futures markets starting next year, subject to regulatory approval.”

According to ErisX CEO Thomas Chippas, the exchange will use the investments to hire staff and “build out our infrastructure and secure the appropriate steps are taken to develop a regulated market for digital assets.”

It has become evident that Fidelity is appearing more aggressive about driving its progress in crypto pursuits.

As Cryptonews Hub previously reported, Tom Jessop, President of Fidelity’s new investment arm—Fidelity Digital Asset Services, made an appearance on crypto podcast Unconfirmed October 26. When asked whether or not Fidelity would launch its own crypto exchange, he said that there is no need for more exchanges, as crypto exchanges are doing quite well at the moment. The crypto offshoot of Fidelity is turning to custody services with a focus on “delivering high-quality market access services for our customers.”

One month later, Jessop said at the Block FS conference that “Fidelity Investments is looking to expand its institutional crypto asset platform to include trading services for the top five to seven cryptocurrencies by market cap,” according to CoinDesk.

“Fidelity is taking a customer-driven approach for now and its 13,000-plus institutional clients are interested in Bitcoin and Ether because they make up a large part of the current market cap,” the executive explained.

Nasdaq is now mulling the launch of Bitcoin futures in the first quarter of 2019 in spite of the enduring crypto slump, Cryptonews Hub previously reported.

Apart from the launch of futures, investing in crypto exchanges may serve as another window of opportunity for players in the crypto space.

Other investors participating in ErisX fundraising include Bitmain, ConsenSys and Monex Group.

ErisX is a revamp of Eris Exchange which launched in 2010 to trade contracts tied to interest rates but failed to gain traction, according to an earlier report by Wall Street Journal on the launch of ErisX.

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