Crypto principal trading firm Arbelos Markets has announced a successful fundraising round, securing a total of $28 million in investment. The round, which was significantly oversubscribed, encompassed seed equity and debt financing and saw participation from leading crypto venture capital firm Dragonfly Capital, among others.

Co-founded by digital asset derivatives veterans Joshua Lim and Shiliang Tang, Arbelos Markets attracted a diverse range of investors, including investment firms Room40 Ventures, Selini Capital, and Breed VC, as well as corporate partners FalconX, Circle Ventures, Paxos, and more. Additionally, angel investors from Aevo, Cega, Talos, Amberdata, and Framework contributed to the investment.

The fundraising campaign comes amid a recovery period for the digital asset industry following the crypto credit crisis of 2022, which saw the downfall of several companies. Arbelos Markets aims to fill the void left by the turmoil, catering to the liquidity and hedging requirements of sophisticated investors through crypto derivatives and options.

With headquarters in the British Virgin Islands, Arbelos seeks to address the lack of transparency that contributed to the previous market turmoil. Lim and Tang, drawing from their extensive experience in the digital asset space, are implementing a "transparency engine" that allows clients to independently verify the company's risk profile, balance sheet, and counterparty exposure in real-time.

Arbelos Markets has quickly gained traction since its inception in late 2023, achieving a derivatives trading volume exceeding $25 billion in notional value within the initial six months of operation. The firm actively operates in centralized and on-chain derivatives and options marketplaces, positioning itself as one of the largest options block liquidity providers in the industry.

The successful fundraising round underscores the continued investor interest in the crypto industry, with crypto venture capital funding exceeding the $1 billion mark for the second consecutive month. The total amount invested in Web3 startups has surged, reaching just under $1.9 billion across 346 deals in the first quarter of 2024.

As Arbelos Markets looks to expand its presence in the crypto derivatives market, the investment round signals confidence in the company's vision and potential to address the evolving needs of sophisticated investors in the digital asset space.