Rulematch is off to a good start

The newly founded Zurich-based startup Rulematch has launched a digital assets trading and clearing platform to meet the specific needs of regulated financial institutions. Following the closing of its pre-series A round, the startup has onboarded seven participants, including BBVA in Switzerland.

Rulematch is a premier digital asset trading venue for financial institutions, offering fast execution, central limit order book, integrated post-trade settlement, and multilateral clearing, which reduce liquidity requirements and counterparty risk. A market operator for spot trading of BTC and ETH versus USD, the platform uses Nasdaq’s pre-trade risk, trading, and market surveillance technology to provide additional transparency and resilience for institutional participants.

The company serves financial institutions that have already been active in trading cryptocurrencies, allowing them to profit from execution and settlement capabilities not available in today’s otherwise retail-dominated market. Only banks and securities firms from select countries may become RULEMATCH participants. They will benefit from trading on a central limit order book with execution times as low as 30 microseconds and integrated post-trade settlement with multilateral clearing. This allows for trading with up to 75% less upfront liquidity required when compared to existing trading venues.

Participants trade in an anonymous central-limit-order book with liquidity guaranteed by designated market makers, including Flow Traders, which entered into a strategic partnership with RULEMATCH to provide institutional-grade liquidity. Bankhaus Scheich Wertpapierspezialist, with its tech arm tradias, also serves as a designated market maker on RULEMATCH.

With seven institutions, including BBVA in Switzerland, a Swiss cantonal bank and DLT Finance, among the first participants, the startup is onboarding more financial institutions. The startup has partnered with Luzerner Kantonalbank AG (LUKB)  to handle qualified participant fiat funds used as collateral and for settlement in fiduciary accounts. All cryptocurrencies on Rulematch are handled in segregated blockchain wallets using the Metaco Harmonize system, the institutional standard in custody technology in combination with IBM Cloud Hyper Protect Crypto Services, the industry’s only encryption service based on a hardware security module certified to FIPS 140-2 Level 4. With encryption and confidential computing capabilities from IBM Cloud, the startup can ensure the security of participants’ assets at the highest level.

Successful funding round
In October this year, Rulematch closed its pre-series A financing round from key investors, including ConsenSys Mesh, a company of Ethereum co-founder Joseph Lubin,  Flow Traders and FiveT Fintech (formerly known as Avaloq Ventures). According to a report on Bloomberg, the company raised $14 million. 

(Press release/RAN)