D2X Secures €4.3M Funding from Circle Ventures, CMT Digital to Expand Institutional Crypto Derivatives Platform

D2X, a regulated crypto derivatives exchange catering to institutional clients, has secured €4.3 million in strategic funding from investors including Circle Ventures, CMT Digital, and Canton Ventures. The capital injection, part of an ongoing initiative to expand its institutional-grade platform, follows a 2023 €9.1 million Series A round that enabled the firm to become the first European entity to obtain a MiFID-compliant Multilateral Trading Facility (MTF) license for crypto derivatives. The funding round also included participation from existing investors such as Point72 Ventures, Tioga Capital, GSR, and Fortino Capital [1][2].

The new investment will accelerate product development and institutional onboarding, with a focus on USD- and EUR-denominated Bitcoin and Ethereum futures. D2X’s infrastructure supports seven-day trading while adhering to MiFID II regulations, addressing demand for continuous access to crypto markets within a traditional financial framework. The exchange recently launched USD-based futures for BTC and ETH, reflecting growing institutional interest in dollar-settled instruments under a compliant environment [1].

Circle Ventures, a subsidiary of stablecoin issuer Circle, plays a pivotal role in the partnership, signaling confidence in D2X’s ability to bridge regulatory gaps in European crypto markets. Charlie Sandor, Investment Partner at CMT Digital, highlighted the firm’s focus on addressing “regulated venues and access to 24/7 crypto markets,” key challenges for institutional adoption in the region. Theodore Rozencwajg, D2X’s founder, stated the funding will enhance its product suite and attract Tier-1 institutions seeking trusted trading venues [1].

The transaction underscores a broader trend of institutional players prioritizing compliance and infrastructure as barriers to mainstream crypto adoption ease. D2X’s MTF license, granted by the Dutch Authority for Financial Markets (AFM), positions it to compete in a market where U.S. exchanges like Coinbase are also expanding regulated derivatives offerings. However, D2X’s emphasis on Europe’s MiFID-compliant framework differentiates it from peers operating in less stringent environments [1].

By securing follow-on support from prominent crypto and traditional finance investors, D2X reinforces its leadership in institutional crypto derivatives. The firm’s strategy of combining round-the-clock trading with regulatory safeguards aligns with the evolving needs of institutional investors navigating fragmented markets. As the industry shifts toward compliance-first models, D2X’s expansion could catalyze further institutional participation in European crypto derivatives [2].

The strategic funding round, led by Circle Ventures, marks a significant milestone for D2X, enabling it to strengthen its market position through enhanced liquidity, advanced trading features, and expanded product offerings. This move aligns with growing global demand for crypto derivatives, particularly among institutional actors seeking secure, regulated platforms to manage exposure to digital assets [1].

Sources:

[1] Cryptonews (https://cryptonews.com/news/d2x-raises-4-3m-from-circle-cmt-digital-to-expand-institutional-crypto-derivatives/)

[2] Startuprise.co.uk (https://startuprise.co.uk/amsterdams-d2x-raises-e4-3m-funding/)

[3] Fundraising Digest (Twitter) (https://t.co/26auSn7Vep)