Arbelos Secures $28M, Targets Transparency in Crypto Post-Meltdown

Key Takeaway

• Arbelos Markets raises $28M in an oversubscribed round led by Dragonfly Capital, signaling strong investor confidence in crypto markets post-2022 meltdown.
• The firm, founded by digital asset veterans, aims to serve sophisticated investors with liquidity and hedging solutions in crypto derivatives and options.
• Arbelos focuses on transparency and risk management, with over $25 billion in derivatives trading volume within six months of operation.

Arbelos Secures $28 Million in Funding

Arbelos Markets, a burgeoning force in the crypto derivatives sector, has successfully closed a $28 million investment round, signaling strong investor confidence. This round was led by Dragonfly Capital, a notable name in crypto venture capital, and saw participation from a diverse group of investors including Room40 Ventures, Selini Capital, Breed VC, and several corporate partners such as FalconX, Circle Ventures, and Paxos. The round was described as "significantly oversubscribed," highlighting the high demand and optimism surrounding Arbelos' future in the digital asset space.

Addressing the Post-Meltdown Market

The digital asset industry is navigating its way out of the shadows of the 2022 crypto credit meltdown, which saw the collapse of several key players like BlockFi and Celsius. Arbelos, founded by Joshua Lim and Shiliang Tang, veterans in the digital asset derivatives market, aims to capitalize on this recovery phase. The firm is positioned to serve the sophisticated needs of investors looking for liquidity and hedging solutions in crypto derivatives and options. This move comes at a time when the market is witnessing an influx of more traditional and sophisticated players, marking a shift from its retail-driven origins.

A Commitment to Transparency

One of the standout features of Arbelos is its dedication to transparency, a response to the opacity that contributed to the recent credit crisis in the crypto sector. Joshua Lim highlighted the industry's past issues with transparency, noting that some firms' financial reports were either outdated or fabricated, concealing true risks. Arbelos aims to counteract this with its "transparency engine," allowing clients to independently verify the firm's risk profile, balance sheet, and counterparty exposure in real time. This initiative is a direct effort to rebuild trust and provide a safer environment for crypto investors.

Expansion and Innovation on the Horizon

With the fresh capital, Arbelos plans to broaden its horizons by expanding its team, entering new markets, and developing more structured products. The firm has already made significant strides in the derivatives trading volume, surpassing $25 billion in notional during its first six months. As one of the largest options block liquidity providers, Arbelos is actively engaging in both centralized and on-chain derivatives and options marketplaces, setting the stage for further growth and innovation in the crypto financial services sector.

Management Quotes

• Joshua Lim, Co-founder of Arbelos:

  "Our key tenet [at Arbelos] was how we could prevent what happened in the last cycle."