Solidus Labs, a machine learning-powered trade surveillance platform, has secured $3m in its seed round of funding.
The capital injection was led by Hanaco Ventures, with participation also coming from Global Founders Capital. A selection of angel investors also participated in the round, including Wall Street veterans David Krell and Norman Sorensen.
Following the close of the deal, Solidus will look to further support the adoption of digital assets by combating trade manipulation and market integrity, it said. Capital will be used to grow its engineering and machine learning teams, as well as its sales, marketing and customer success operations.
According to a study last year by the Blockchain Transparency Institute, around 80 per cent of the top 25 Bitcoin pairs, by volume, on the CoinMarketCap are driven by manipulation, and a huge sum of digital trading volumes is fake, it states.
Regulators around the world have put increased focus on digital assets and trying to find the best way to regulate the market.
Solidus uses machine learning technology to detect, address, investigate and report market manipulation within the digital asset trading space. The platform adapts to new types of manipulation and offers case management tools to track, manage and audit when needed.
Streamlined reporting tools are available to support regulatory requirements such as OATS, MiFID II, CAT and SAR.
Its platform is used by exchanges, broker-dealers, hedge funds, and market makers in Europe, the US, and Israel. Through its solution, it helps them lower risk, improve transparency and boost compliance efforts.
Solidus founder and CEO Asaf Meir said, “Digital assets offer capital markets enormous value but also add numerous new layers of complexity to trading workflows. More complexity, in this case, means different kinds of data, operational needs, new manipulation schemes and evolving regulation that legacy surveillance systems are unable to sufficiently accommodate for.”
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