Grayscale Bitcoin ETF Liquidity Partner Flowdesk Raises $50 Million in Series B

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Jai Pratap

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Jai Pratap

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Jai serves as the Asia Desk Editor for Cryptonews.com, where he leads a diverse team of international reporters. Jai has over five years of experience covering the web3 industry.

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January 18, 2024

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French crypto financial services firm Flowdesk has successfully raised $50 million in a Series B funding round led by Cathay Innovation. The funding round includes participation from Cathay Ledger Fund, Eurazeo, ISAI, Speedinvest, BPI, and Ripple, as per a statement shared with Cryptonews.

Flowdesk’s $50 million funding follows a $30 million Series A round in June 2022, led by Eurazeo, Aglaé Ventures, and ISAI, with participation from Coinbase, Ledger, Speedinvest, Fabric.vc, and angel investors.

The firm has recently been appointed as the liquidity provider for the Grayscale Bitcoin ETF, marking a strategic move in response to the growing institutional adoption and liquidity influx following the approval of the Spot Bitcoin ETF. Jacky Abitbol, Managing Partner at Cathay Innovation, said on the occasion:

“We are very excited to support Flowdesk to further accelerate their growth and international development. Through their innovative SaaS model, Flowdesk has consistently demonstrated impressive performance over the last three years. Our investment extends beyond capital, foresting a collaborative journey with our long-standing Cathay ecosystem to shape the future of financial markets.”

Flowdesk to Expand OTC Offerings with New Funds

The $50 million funds raised will be utilized to expand Flowdesk’s over-the-counter (OTC) offerings, increase regulatory coverage in Singapore and the United States, and facilitate the expansion of offices in key financial hubs. Additionally, the firm plans to make key hires to support its growth initiatives.

Flowdesk’s revenue witnessed a threefold increase year on year, despite market challenges, demonstrating its resilience in the crypto landscape. The company has launched new offices in North America, with notable hires from the Genesis team to develop its OTC desk.

In addition to its role as the liquidity provider for the Grayscale ETF, Flowdesk has partnered with Société Générale FORGE, a subsidiary of Société Générale, and secured approval as the market maker for the first stablecoin (EUR CoinVertible) backed by a European-regulated financial institution.

The firm’s strategic positioning in the growing institutional interest in ETFs and the expanding OTC market is highlighted by its collaboration with regulatory bodies such as the SEC and MiCa. Flowdesk has obtained a Digital Asset Service Provider registration in France and is actively pursuing licenses in Singapore and the US. Guilhem Chaumont, CEO and Co-Founder of Flowdesk, said:

This raise highlights the significance of Flowdesk as the emerging industry standard for market-making and over-the-counter (OTC) services, offering sustainable and compliant liquidity solutions for token issuers and institutions. In a landscape marked by regulatory uncertainties, volatility, and multiple industry-wide setbacks, liquidity has remained scarce. Flowdesk’s full suite of services aims to revolutionize this landscape, offering scalable, risk-adjusted, and capital-efficient solutions.