Rails Launches U.S. Perpetual Contracts Exchange After $14M Funding

Rails, a cryptocurrency exchange, has introduced a new platform in the U.S. that is dedicated solely to perpetual contracts, commonly referred to as "perps." This initiative coincides with the company securing $14 million in new funding, with the goal of establishing a more reliable and trustworthy exchange in the aftermath of the FTX collapse. The funding round was spearheaded by several prominent venture capital firms, including Lightspeed Venture Partners and Pantera Capital, along with contributions from other notable investors.

The new exchange, Rails, is engineered to deliver a more transparent and secure trading environment. The platform will offer users a suite of advanced trading tools and features, including leverage trading, margin trading, and a variety of order types. Rails distinguishes itself by placing a strong emphasis on user safety and regulatory compliance. The company has announced that it will enforce rigorous Know Your Customer (KYC) and Anti-Money Laundering (AML) procedures to uphold the integrity of its platform.

The launch of Rails is timely, given the recent turmoil in the cryptocurrency industry following the collapse of FTX, one of the world's largest exchanges. The FTX incident has sparked significant concerns about the transparency and security of cryptocurrency exchanges, leading to heightened scrutiny from regulators and investors. Rails aims to address these issues by providing a more transparent and secure trading environment.

The $14 million in new funding will be allocated to further develop the platform, expand the team, and bolster regulatory compliance efforts. The company plans to hire additional engineers, compliance experts, and customer support staff to ensure the smooth operation of the exchange. Rails also intends to invest in marketing and outreach efforts to attract new users and foster a strong community around its platform.

The launch of Rails signifies a notable development in the cryptocurrency industry, as it represents a novel approach to exchange design and operation. By focusing exclusively on perpetual contracts and prioritizing user safety and regulatory compliance, Rails aims to establish a new benchmark for cryptocurrency exchanges. The company's success will hinge on its ability to attract users, build a robust community, and maintain a high level of transparency and security.