Funding Round · Coinbase · Fortune Technology
Variational raises $50 million Series A to bring liquidity from traditional markets to blockchain rails
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The crypto industry has long defined itself in opposition to traditional finance but, in recent years, the two worlds are on a path to convergence.
Key facts
- This pitch has proved popular with investors as Variational on Wednesday announced it has raised a $50 million Series A funding round led by Dragonfly Capital, with participation from Bain Capital
- The pair would go on to start a quantitative trading firm that was acquired by Barry Silbert’s Digital Currency Group before leaving in 2021 to found Variational
- They’re not porting liquidity, they’re rebuilding liquidity,” Variational co-founder and CEO Lucas Schuermann said
- Variational’s co-founders, Schuermann and Edward Yu, met after being placed in adjoining rooms in an entrepreneurship-focused dorm during their freshman year at Columbia
Summary
This pitch has proved popular with investors as Variational on Wednesday announced it has raised a $50 million Series A funding round led by Dragonfly Capital, with participation from Bain Capital Crypto and Coinbase Ventures. The Cayman Islands-based Variational is aiming to compete in an increasingly competitive market when it comes to offering so-called “real-world assets,” including oil or commodities, in a blockchain wrapper that can be traded instantly around the world. “Order books have a cold start problem. Variational’s co-founders, Schuermann and Edward Yu, met after being placed in adjoining rooms in an entrepreneurship-focused dorm during their freshman year at Columbia.