Ostium Labs, the creators of the Ostium protocol, have successfully secured $24 million in new funding. This includes a $20 million Series A round co-led by General Catalyst and Jump Crypto, along with an undisclosed $4 million strategic investment, as announced in a press release on Wednesday.
This brings the total funding raised by the company to $27.8 million.
Operating on Arbitrum, Ostium provides on-chain perpetual swaps linked to stocks, commodities, indices, and foreign exchange (FX), presenting self-custody and verifiable market rules as a crypto-native alternative to broker-managed contracts for difference (CFDs).
The protocol safeguards traders’ collateral by keeping it in segregated smart contracts, thereby maintaining self-custody.
“We believe that the global CFD broker market is ripe for disruption by DeFi. Our goal is to develop the platform that will make this transformation possible,” stated Kaledora Kiernan-Linn, co-founder and CEO of Ostium, in the announcement.
Ostium’s current investors include Balaji Srinivasan, LocalGlobe, Susquehanna International Group (SIG), Crucible Capital, GSR, Nick Van Eck, Shiliang Tang, and angel investors from firms such as Bridgewater, Two Sigma, and Brevan Howard.
The protocol reported processing $25 billion in cumulative volume, indicating that over 95% of open interest is concentrated in traditional markets, notably including significant on-chain gold perps during the current market rally.
Ostium intends to utilize the new capital to broaden its asset coverage and enhance its infrastructure.
Read more: Jane Street Leads $105M Funding for Antithesis, a Testing Tool Used by Ethereum Network
