Trading On margin

Coinbase Ventures Among X-Margin Series A Backers


X-Marge, a company applying privacy technology to credit and financial market risk, raised $ 8 million in a Series A funding round where Coinbase Ventures, HashKey Capital and Spartan Group were major investors. Bixin Ventures, Miranda Ventures (Bybit), Gemini, Primitive Ventures and Kenetic Capital also participated in the roundtable with existing investors Alameda Research Ventures, CMT Digital, CoinShares, DCG, GSR and Polychain.

The company has also received support from some of the most active commercial institutions and users of X-Margin Credit. They included CMS Holdings, Wintermute, MGNR, Dunamis Trading, Pirata Capital and Kronos Research.

Founded in 2019, X-Margin has facilitated more than $ 220 million in credit extended to institutions trading digital assets through direct lending and DeFi lending platforms. X-Margin’s risk engine currently monitors $ 2 billion in trading book assets.

“We are delighted that investors of this caliber share our vision of transforming credit for institutions trading digital assets,” Founder and CEO of X-Margin Darshan Vaidya noted. “We believe that a risk engine whose neutrality can be proven can evolve automated credit extension, giving any loan pool visibility and capital control over the credit granted.”

X-Margin enables lenders of all sizes to operate a scalable, data-driven lending business. On X-Margin Credit, lenders can connect with creditworthy borrowers, monitor risk in real time, and trigger margin calls if a borrower’s net trading position value is outside agreed parameters. Borrowers can establish their creditworthiness without revealing sensitive portfolio information using X-Margin’s privacy protection technology and crypto evidence.

Credit scoring techniques cover a borrower’s exchange, custody, and DeFi portfolios. It calculates risk without seeing the underlying trading data, so it is clearly impartial in assessing the risk of an institutional trading company, the company said.

“Facilitating credit in crypto can generate much more liquidity and volume in CeFi and DeFi exchanges, and we believe that X-Margin’s technology can play an important role in this, making credit risk more transparent and manageable,” Vaidya concluded. “We will continue to create a platform where any pool of capital can access borrowers and easily operate a risk-managed lending transaction.”


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