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Rails Raises $6.2M for Crypto Exchange

  • $6.2 Million in funding for Rails Exchange, bridging the gap left by the FTX crash in 2022.
  • Market focus and target customers, prioritizing institutional professionals and high-net-worth investors.
  • Differentiated approach to futures trading, using regular futures contracts based on stablecoin USDC.

Rails, a decentralized crypto exchange, raised $6.2 million to bridge the gap of the FTX crash in 2022. Satraj Bambra, the startup’s CEO, revealed plans to bring offshore services to crypto-friendly countries.

Rails emphasizes customer deposit protection and crypto derivatives trading, filling the void left by the closure of FTX. There is a huge gap in the market when it comes to sustainable futures trading, especially for institutions. Bambra founded the company with his wife Megha Bambra and former Grindr COO Rick Marini

They previously co-founded a startup called BlockEQ, which was wholly sold to Coinsquare. Bambra has received responses from hedge funds expressing interest in crypto trading but lacking the tools to do so.

Rails aims to fill that gap by providing an enabling platform. Their target customers include market makers, institutional professionals, and high-net-worth investors. 

The regular futures contract trades based on spot prices, using assets like the stablecoin USDC rather than bitcoin itself. This approach allows for greater risk management in the direction of the market. Rails takes a different approach to self-care, giving property owners full control. 

The company has raised more than $10 million in private capital and plans to open to the public later this year. In May, beta testing and selected adopters will begin to ensure smooth operation.

The startup's platform is not yet available in the US and Bambra said a location is still being decided, and a response is expected by September. 

The initial capital will come from jurisdictions that are friendly to start-ups. The main goal is to put the user experience first. Using Rails, users can easily log in and register, while educating them on the importance of funds in crypto wallets and how to withdraw funds, as well as other goals.

Edited by Shruti Thapa