It has been a busy week at Galaxy Digital, who announced that they had raised $5.5 million in a Series A funding for a new contract management startup company. This comes just days after the company announced that they would be expanding their services to offer crypto options contract trading.
Galaxy Digital partnered with Docusign on the $5.5 million investment. The purpose was to raise the capital necessary to back a smart contract cloud firm known as Clause. BN Capital and Seedcamp were already investors in the firm, but the new round of funding included additional investors, including Raptor Group, Galaxy Digital’s EOS VC Fund backed by Block.one, Nat Turner, and Zach Weinberg (co-founders of Flatiron Health), Tom Gonser (founder of DocuSign), and Jonathan Summers (co-founder of Everett Capital Advisors).
In addition, as part of this round, two new executives will join the firm. Mike Dinsdale, who had been the CFO at Gusto, and Greg Wasserman, the C0-Head of principal investments at Galaxy Digital will take on more active roles.
The technology at Clause allows users to be able to add smart clauses to documents, making the business processes automated. This includes legal contracts as well.
What Clause has been able to do is to allow companies to make continuous alterations to agreements without having to completely rewrite and republish the agreement online. This is innovation that is helping to speed up the contract process according to former CEO Peter Hunn, who said:
“Contracts and other documents can now be APIs. With this round, we add a wealth of collective experience in disrupting enterprise contracts through digitization. We are excited to drive the next phase of market adoption.”
This news comes a week after Galaxy Digital responded to demands by institutional investors, by expanding their services to offer new contract options. The options will specifically address crypto assets, and are a widespread method that can help in the profitability of the market by helping investors to hedge their risks, thus avoiding losses from trading.
The global head of business at Galaxy Digital, Yoshi Nakamura, explained that crypto related businesses have expressed a great desire for increased crypto options. He did not elaborate on this, however.
His evaluation may be a correct one. SegWitCoin BTC futures, another form of crypto derivatives, recently broke the $10,000 mark. In addition, high volatility has proven to be a big concern among cryptocurrency investors, which is why 31% of those found in a recent survey gave as the primary reason why they stopped using cryptocurrency altogether.
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