Rho Labs, a pioneering fintech startup, has just accomplished a significant milestone, securing a whopping $2.2 million in a pre-seed capital raise led by Speedinvest.
Founded in the waning months of 2022, Rho Labs is on a mission to reshape the landscape of derivatives trading, bringing blockchain technology to the forefront.
The brainchild of Alex Ryvkin, who previously served as Chief Product Officer at crypto firm Copper, Rho Labs aims to create a market for rates derivatives that transcends traditional boundaries.
Ryvkin envisions a future where traders can harness the power of blockchain for digital asset lending, funding rates, and staking, thereby ushering in a new era of efficiency and security.
“Interest rate derivatives [IRDs] represent the largest asset class in traditional finance with over $500 trillion in outstanding interest,” Ryvkin explains, emphasizing the vast potential of the market they are poised to disrupt.
The funding round, spearheaded by Speedinvest, saw participation from key players in the industry, including Copper CEO Dmitry Tokarev, Daedalus Collective, Re7 Capital, and Keyrock. This diverse backing underscores the excitement and confidence surrounding Rho Labs’ vision.
Olga Shikhantsova, a partner at Speedinvest, recognizes the global significance of interest rate derivatives, stating, “Market participants across the world widely use IRDs to efficiently hedge against or capitalize on future rate changes.” Shikhantsova expresses enthusiasm for Rho Labs’ endeavor to leverage technology and make rates markets more robust and secure.
As Rho Labs sets its sights on the future, the company plans to launch a private beta before the year’s end. This marks a crucial step in bringing their groundbreaking platform to the hands of eager traders and investors eager to explore the possibilities of blockchain in derivatives trading.
In parallel, the London Stock Exchange (LSE) finds itself navigating a shifting landscape. Recent data reveals a significant downturn in trading volume, with a 38% decrease in average daily trades from the previous year. The average traded value per day has also seen a substantial drop of 23%, painting a picture of a changing dynamic within the venerable exchange.
However, LSE CEO David Schwimmer remains undeterred, highlighting the success of the group’s Refinitiv data business. This success has prompted a forward-looking approach, with plans for a £1 billion share buyback and a strategic emphasis on data-driven insights and artificial intelligence.
“In less than three years, we have transformed our business, trebling the growth rate of the Refinitiv data and analytics businesses we acquired,” Schwimmer declares. The acquisition of Refinitiv in 2021 for $27 billion has proven instrumental in LSE’s recent profit surge, reinforcing the notion that data-driven strategies are becoming increasingly central to the exchange’s future plans.
As Rho Labs and the London Stock Exchange navigate their respective paths—one disrupting the derivatives market with blockchain innovation, and the other leveraging data for sustained growth—the financial landscape continues to evolve, promising both challenges and opportunities on the horizon. The coming months will undoubtedly unveil the impact of these endeavors on the financial industry’s ever-shifting tapestry.