Fidelity and Nasdaq back ErisX with $27.5 million investment

ErisX raises upwards of $27.5 million from major investors as it prepares to launch new marketplace for digital assets.

Eris Exchange’s soon-to-launch crypto marketplace has raised upwards of $27.5 million in a Series B funding round from major institutions including Fidelity Investments and Nasdaq Ventures.

ErisX said in a statement that with backing from such authoritative firms the exchange’s position in the market has been cemented, as it looks to provide a fair and transparent digital asset trading platform.

“With increasing financial support from leading edge firms, ErisX stands to provide the most robust, secure and regulated digital asset offering available to both institutional and individual participants,” said Thomas Chippas, CEO of ErisX. “Closing this second round of funding enables us to continue building our modern platform and expand our team.”

Fidelity and Nasdaq join other major institutions who have already backed the crypto venture with investments, including Virtu Financial, DRW Venture Capital, Cboe Global Markets and NEX Group (now part of CME Group). Bitcoin mining company Bitmain, and blockchain specialist ConsenSys, also joined Fidelity and Nasdaq in the Series B funding round.

“Many of our customers have been seeking various hedging solutions and would be happy to see US regulatory compliant exchanges like ErisX provide spot and futures’ contracts in one platform,” said Jihan Wu, co-founder of Bitmain. “We are confident that our customers will find this strategic partnership beneficial.”

First announced in October, ErisX will initially provide trading in Bitcoin, Litecoin, Ethereum and Bitcoin Cash, with futures contracts on each that will be physically delivered. It is also looking to clear the products itself and has a derivatives clearing organisation license application pending with the CFTC. The exchange operator added that it will leverage its investors’ strengths, experiences and knowledge in pioneering a single platform for digital spot and regulated futures contracts.

Fidelity Investments also recently confirmed plans to launch a new company for the custody and execution of digital assets in a major move for the cryptocurrency industry. Known as Fidelity Digital Assets, the company will offer trading and custody of cryptocurrencies to institutional investors such as hedge funds, family offices and market intermediaries.