A clearing network built by a co-founder of Cosmos has raised $6.4 million in a funding round led by Blockchange Ventures and Coinbase Ventures. The startup, called Cycles, aims to improve how institutional players manage capital and protect privacy in crypto markets.
The backers
Blockchange Ventures and Coinbase Ventures led the $6.4 million round. Both firms are betting on Cycles' approach to clearing — the process of settling trades — for institutional clients. The round closed this month, according to the company.
Capital efficiency and privacy
Cycles says it wants to redefine market efficiency for institutions by tackling two pain points: capital management and privacy. The clearing network is designed to let firms deploy capital more efficiently while keeping trade details confidential. That's a combination the crypto market has struggled to deliver at scale.
From Cosmos to clearing
Cycles was founded by a co-founder of the Cosmos network, a blockchain ecosystem known for interoperability. The founder's name wasn't disclosed in the announcement. The project marks a shift from public blockchain infrastructure to a specialized, permissioned clearing layer for professional traders.
The $6.4 million round gives Cycles runway to build its platform. The company plans to use the funds on development, with a focus on capital efficiency and privacy features for institutional users.
