Theo Secures $20 Million to Build Advanced Crypto Trading Platform

Crypto startup Theo has raised $20 million in funding to develop its trading infrastructure designed for everyday investors, featuring advanced trading strategies. Co-led by Hack VC and Anthos Capital, the investment includes traditional finance figures which indicates a shift in the relationship between traditional banking and crypto. Founded by ex-traders from Optiver and IMC, the platform offers automated trading techniques with strong risk management practices.

Theo, a crypto trading infrastructure company, has successfully secured $20 million in funding to enhance its offerings aimed at delivering professional trading strategies to everyday investors. The funding round was co-led by Hack VC and Anthos Capital, as mentioned in a Thursday press release.

Notably, the investor pool includes several crypto-focused entities, like Manifold Trading and Amber Group, along with individual investors linked to well-known financial firms such as Citadel, Jane Street, and JPMorgan. This participation by traditional finance figures hints at a significant shift in the relationship between established banking and cryptocurrency markets, which have previously remained separate due to regulatory hurdles.

The dynamic is changing, particularly with stablecoins gaining traction. As per reports, banks like ING are beginning to explore crypto options, while firms like Paxos and Coinbase are eyeing bank charters to bridge the gap.

Theo’s founders, Abhi Pingle, Arijit Pingle, and TK Kwon, come with an impressive background in quantitative trading from firms like Optiver and IMC. The platform allows users to deposit digital assets into specialised vaults, enabling access to advanced trading strategies without an extensive knowledge of the complex algorithms behind them.

The features include high-frequency arbitrage and advanced hedging, while also managing execution and risk along with dynamic capital allocation. Abhi Pingle noted in the release that the current crypto market landscape is inefficient. Their goal with Theo is to connect traditional finance with retail investors, enhancing capital efficiency in the process.

Theo’s technology operates on a custom validator network, facilitating trade executions across both centralized and decentralized exchanges. Additionally, the platform boasts robust security through margin requirements and overcollateralization to manage risk effectively, reassuring its users of a safer trading experience.