FX HedgePool, a peer-to-peer matching platform for institutional foreign exchange transactions, has closed its Series A funding round, raising $8 million. The proceeds will be utilized to accelerate its multi-product strategy, aiming to make its network more efficient.
Announced on Wednesday, the funding round was led by Information Venture Partners and was participated by Fidelity International Strategic Ventures (FISV) and NAventures, which is the corporate venture capital arm of the National Bank of Canada.
“Our new partnerships will further strengthen FX HedgePool’s ability to deliver on a shared vision of changing the market for good,” said the Co-Founder and CEO of FX HedgePool, Jay Moore.
Eliminating Industry Inefficiencies
FX HedgePool launched services in January 2021 and has since facilitated over $4 trillion in matched foreign exchange trades. According to the company, it has more than 30 institutional clients, inducing asset managers and top-tier banks.
Additionally, the trading venue is working on launching spot matching services by the end of this year. That decision was fueled by the growing demand from the buy-side market participants.
The company believes that the extension of its offerings will reduce market impact and track errors. In addition, it will bring cost transparency and eliminate operational inefficiencies for buy-side participants in the FX market.
“We’ve led the market towards peer-to-peer matching, and this investment will allow us to continue innovating to bring efficiency, cost savings and better outcomes for the investment community,” Moore added.
Dave Unsworth, the General Partner at Information VP, said: “When observing changes in the FX market over the last couple of years, we saw end-investors and buy-side institutions were both affected by ineffective processes that severely impacted fund performance, and the FX market was ripe for change… FX HedgePool has proven its ability to innovate and effect change in the largest capital market in the world.”
