LeapRate Exclusive… LeapRate has learned that Ireland-based FX central clearing provider FXCH, which uses Blockchain to settle FX trades, is trying to raise €8.5 million (USD $9.1 million), at a pre-money valuation of €20 million.
FXCH is planning to raise the first €1 million via an Equity Crowdfunding campaign on Seedrs.com.
The €8.5 million is targeted by FXCH for growth capital. FXCH is driving a robust schedule of software development and plans to hire additional experienced sales people in some of the leading financial centers around the world.
FXCH is a fintech startup which enables financial institutions to clear Spot Foreign Exchange trades made across different trading venues, using advanced cryptographic signatures with a proprietary Distributed Ledger technology – the Blockchain.
Franck Mikulecz, FXCH
LeapRate ran an exclusive interview back in August with FXCH Managing Director Franck Mikulecz about FXCH’s new approach to FX clearing and how it works.
In contrast to FX Prime Brokerage (the business FXCH is seeking to disrupt), FXCH aims to offer the highest level of funds and operational safety without the need to use a Tier-1 Bank multi-billion dollar balance sheet.
FXCH members pool resources in the form of a Clearing House Guaranty Fund, which secures participants collectively against a possible default.
The Clearing House accepts members in a clear legal framework based on rules that are designed to be simpler and faster to process than a Bank’s FX Prime Brokerage agreement.
FXCH aims to be an affordable, simple, and safe solution for accessing FX markets that allows firms of any size to compete in the FX markets like they do in the Futures market.
More on how FXCH works can be seen in the following video: