Blockchain Infrastructure Provider AlphaPoint Raises US$15M Series A

Mike Novogratz, the billionaire investor and former Wall Street macro trader who established Galaxy Digital Ventures, views the partnership as emblematic of profound changes occurring within financial systems. "We are in the early stages of a fundamental transformation in financial markets due to the digitization of assets," Novogratz said, outlining his investment thesis. "This transformation started with currencies but is now changing the way we look at commodities, real estate, art, and other traditional and emerging asset classes. We are excited to partner with AlphaPoint as we continue to help drive this revolutionary change in digital markets."

The merchant bank model Novogratz is constructing emphasizes trading, principal investing, asset management, and advisory capabilities—characterized as an "institutional-quality merchant banking business in cryptocurrency and blockchain." Galaxy Digital Ventures launched its fundraising initiative in January 2018 targeting $190 million. Speaking recently to Bloomberg, Novogratz described his vision as building the "Drexel of crypto," invoking the legendary 1980s investment bank.

AlphaPoint's board will add Greg Wasserman, managing director at Galaxy Digital Ventures. Wasserman outlined the market opportunity in his statement: "The market opportunity for digitizing illiquid assets is tremendous. Consumers are demanding increased access, transparency and trust. Businesses are seeking increased liquidity with reduced fraud, risk and cost. Executing on this market opportunity requires proven best-in-class technology alongside seasoned management teams with substantial experience providing new technology to a variety of financial institutions. AlphaPoint brings this rare combination together and I look forward to working with them."

Established in 2013, AlphaPoint supplies blockchain platforms and supporting infrastructure to financial institutions seeking to digitize holdings and launch trading operations. The company has engineered proprietary blockchain technology for cryptocurrency exchanges and asset tokenization spanning commodities, luxury goods, and private equity stakes. Its infrastructure supports capacity of nearly one million transactions per second. Major institutional clients leverage AlphaPoint's white label solutions, including CME Group, the Royal Mint of the United Kingdom, London Block Exchange, Bitt, and Muirfield Investment Partners.