Cryptocurrency exchange Bitfinex has invested in LN Markets, a derivatives platform built on top of bitcoin’s lightning network.
According to a report by The Block, LN Markets has raised an undisclosed sum of money in a pre-seed round of funding, including participation from Bitfinex and investment firms Arcane Crypto and Fulgur Ventures.
The derivatives exchange, first launched in March of this year, says it intends to use the funding to provide clients with a better trading experience.
According to a launch release, LN Markets offers traders instant access to bitcoin markets, margins and profit & loss while reducing counterparty risk to its “minimum.” The platform utilizes the Layer-2 scaling solution Lightning Network in order to execute faster and cheaper transactions on bitcoin’s network.
Paolo Ardoino, CTO of Bitfinex, called the investment into LN Markets an important step for the exchange.
When we look at a project such as LN Markets, we see a direct application of the technologies that we love. It is therefore important for us to provide funding and to participate in such an innovative venture.
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