Cryptocurrency startup Portofino Technologies has officially launched its high-frequency digital asset trading platform, securing substantial funding from venture capital firms in the process.
At the launch of its platform, Portofino announced it had raised $50 million in equity from Valar Ventures, Global Founders Capital and Coatue. Although Portofino did not disclose how the funds will be used, the company has been active on the hiring front and has hired over 35 people across 5 locations worldwide.
Portofino was founded in 2021 by former Citadel Securities employees Alex Casimo and Leonard Lancia. The company builds crypto-focused high-frequency trading technology primarily used by hedge funds. While the company is only now emerging from stealth mode, it claims to have traded billions of dollars across centralized and decentralized crypto exchanges.
High Frequency Trading or HFT refers to automated trading platforms typically used by large financial institutions to execute large volumes of orders at extremely high speeds. These platforms rely on complex algorithms to analyze market trends and trading opportunities that can be executed in seconds.
Hedge funds taste a little honey.
A recent report by PwC shows that a third of the 89 traditional funds surveyed invest in digital assets. https://t.co/Tm4uNEZo5V
— Cointelegraph (@Cointelegraph) June 9, 2022
On the crypto front, HFT strategies can now be executed on decentralized exchanges or DEXs. Unlike centralized exchanges, DEXs offer much faster trading speeds and new arbitrage opportunities. Portofino’s HFT technology builds on these capabilities by improving access to liquidity.
Related: Fixed rates to create a DeFi 2.0 for institutions, says former bank exec
Hedge funds and other institutional investors have shown great interest in cryptocurrencies, but mainstream adoption has been slow due to several factors including regulations and a lack of infrastructure. As the head of crypto investment manager Apollo Capital told Cointelegraph:
“No one wants to be the first in something like this. Because if you’re first and something goes wrong, then there’s a career risk. At some point this will turn into the opposite.”
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