The France-based crypto trading firm that focuses on market making and provision of liquidity, Flowdesk, has raised $102 million. This specific round of funding includes a combination of debt and equity financing, where debt financing makes up 10% of the total and equity financing the remaining 90%.
Crypto Trading Platform Flowdesk Raises $102 Million
This will enable Flowdesk to enhance its trading infrastructure and increase its global reach. This was defined by CEO Guilhem Chaumont as a pivotal moment for the company.
In his statement to CoinDesk, he said, “The institutional demand for market making infrastructure is growing at an unprecedented pace, and we are investing in our technology and services to meet that demand.”
With the New Capital Comes New Strategic Growth
Flowdesk intends to use the newly raised capital in expanding the business through OTC derivatives and setting up a credit desk dedicated solely to crypto.
This will also allow the company to increase the workforce by around 100%, allowing the company to strengthen its position in the ever-growing digital assets market.
The company has established a solid framework for trading digital assets. Flowdesk offers broader market access, compliance to regulations, and advanced multi-currency arrangers, and it believes that expanding these services will help cover the ever-growing institutional need for crypto market making.
Key Investors and Debt Financing
HV Capital, a Europe-based investment firm, spearheaded the equity segment of the round together with Eurazeo, Cathay Innovation, ISAI VC, and others. BlackRock, on the other hand, provided the funding through accounts and managed funds.
Alongside the investment, HV Capital has also gained a board position in Flowdesk. Chamont stated that accruing debt was a tactical decision.
“We will approach it not just with equity or our own earnings, so we are choosing the route of debt, and that is one non-dilutive strategy for us,” he stated while addressing repayment concerns. Flowdesk can repay the debt, so there will be no issues.
Wide Investor Participation and Tokenization Strategy
According to Chamont, in most cases, Flowdesk is not actively looking for new funds, but due to wide investor participation, the company was compelled to proceed with the funding round as it was drawn in by their participation. A significant portion of the deals took place in 2024.
Additionally, Flowdesk has been keen on the concept of tokenization. The company has collaborated with token issuers to provide liquidity to the tokenized assets market and intends to broaden the scope of its business to incorporate stable coins, tokenized securities, and money market funds.
“From day one, Flowdesk has been built on the vision that tokenization would redefine financial markets,” Chaumont said.
The Evolving Crypto Landscape
Unlike the customary funding rounds, Flowdesk’s latest funding round is a unique mix of equity and debt financing.
Of the total $102 million, approximately $10.2 million is issued as a loan, which comes with an obligation to pay back at some scheduled time. The remainder is equity financing, most of which is from HV Capital.
While Flowdesk has attained growth, it is also on the lookout for additional red flags to deal with stricter regulations.
Recently, the company hired a legal professional to help deal with the intricate United States laws regarding cryptocurrency. This move in and of itself demonstrates some of the issues which crypto companies have to deal with while entering heavily regulated areas.
Flowdesk’s achievement in receiving funding mirrors the increasing institutional engagement in crypto trading and liquidity supply.
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