Theo Raises $20M to Expand Institutional-Grade Trading Platform for Retail Investors

Theo, a provider of onchain trading infrastructure, has successfully raised $20 million from 17 investors to bolster its institutional-grade trading platform, which is designed to cater to retail investors. The funding round was co-led by Hack VC and Anthos Capital, with additional support from venture capital firms such as Manifold Trading, Miranda Ventures, Flowdesk, MEXC, and Amber Group. The round was disclosed on April 24.

Notable angel investors in this deal include Citadel, Jane Street, IMC, and JPMorgan. Theo, founded by former quant traders, aims to provide retail investors with access to advanced trading strategies typically reserved for professional trading firms, such as high-frequency trading and market making.

Theo’s infrastructure is versatile and can be utilized across both centralized exchanges and decentralized financing protocols. As of April 23, the Theo network has secured nearly $29 million in total value locked, although this figure has decreased from its peak in February.

Theo is part of a broader trend in the blockchain industry, where various protocols are working to bridge the gap between institutional finance and retail investors. Other companies in this space include Polygon, Fireblocks, Ondo Finance, Lido, and BloFin, all of which have been actively contributing to this effort.

Institutional involvement in digital assets has become a reality, driven by factors such as the launch of Bitcoin exchange-traded funds, the rise of real-world asset tokenization, the appeal of onchain lending, and the increasing use of stablecoins as a preferred funding method. These trends are making it easier for institutions to invest in digital assets, as secondary markets built on the blockchain can streamline the investing process by removing inefficiencies and lowering barriers to asset ownership.

According to a recent survey by Coinbase and EY-Parthenon, the majority of institutional investors plan to increase their crypto allocations this year. The survey also found that three-quarters of institutions could be active DeFi users within two years, highlighting the growing interest and participation of institutional players in the decentralized finance space.