Axoni has raised $18 million in a Series A funding round led by Wells Fargo and Euclid Opportunities, the venture arm of ICAP. Goldman Sachs, JP Morgan, Thomson Reuters, Andreessen Horowitz, FinTech C
Axoni has raised $18 million in a Series A funding round led by Wells Fargo and Euclid Opportunities, the venture arm of ICAP. Goldman Sachs, JP Morgan, Thomson Reuters, Andreessen Horowitz, FinTech Collective, F-Prime Capital Partners, and Digital Currency Group also participated in the round. The financing brings Axoni's total funding to more than $20 million.
The New York-based company provides blockchain technology, smart contract development, and analytics tools for financial services firms. Axoni has deployed its technology across post-trade operations at more than a dozen global banks and financial infrastructure providers, handling the settlement of credit default swaps, equity swaps, and foreign exchange derivatives.
Richard Kerschner, chief corporate development officer at ICAP's post-trade division, said his firm began working with Axoni over a year ago. "We've been impressed with their knowledge of financial services, as well as their expertise with how blockchain technology can intersect with other evolving technologies," Kerschner said. "They have quietly built their credibility with key financial players and have emerged as one of the leaders in this rapidly evolving space."
Axoni's funding comes as major market infrastructure operators move blockchain technology into production environments. ICAP will become NEX Group starting in January and plans to process $2 trillion in foreign exchange, fixed income, and swaps transactions on a blockchain platform. The company will use its Traiana subsidiary as a messaging hub for the network. Axoni is working with ICAP on the project.
Jenny Knott, chief executive of ICAP's post-trade risk and information services, told the Financial Times that clients will be able to access their own node on the blockchain by the end of March. "We create a digital record in a cloud vault and also on the blockchain," Knott said. "We are building the NEX technology platform and licensing to the Traiana legal entity, so that we can run both systems in parallel. Over time we will be able to turn off the old system."
Euroclear and Paxos completed the initial pilot phase of Euroclear Bankchain, a blockchain-based settlement service for London bullion markets. Over 600 over-the-counter bullion trades moved through the platform during the two-week test, with Scotiabank, Société Générale, Citi, MKS PAMP Group, and INTL FCStone participating. Euroclear plans to launch the service in 2017.
Angus Scott, director of product strategy and innovation at Euroclear, said the pilot demonstrated the potential of blockchain settlement. "This is a real first step in bringing a new settlement capability to the London bullion market that will help lower risk and simplify the post-trade process," Scott said.
