Toronto-based Secure Digital Markets, a digital asset brokerage providing service on spot and block execution, liquidity and settlement, has raised C$4 million in a bridge financing. The round was backed by Alpha Sigma Capital, Avalon Mixed Asset Strategy Fund, Oblicas and other investors. It marks the first time Secure Digital Markets has taken outside capital.
Secure Digital Markets Raises $4 Million from Institutional Investors After 10X YoY Growth to further accelerate its expansion.
Toronto, ON, Oct. 06, 2021 (GLOBE NEWSWIRE) — Secure Digital Markets, Canada’s leading digital asset brokerage providing best-in-class service on spot and block execution, liquidity, and settlement has announced the completion of its $4 million strategic bridge investment round. This capital, invested at an undisclosed 9-figure valuation, represents the first time the company has taken in external capital.
This financing round was completed through a mix of convertible promissory notes (60%) and equity (40%), and was led by institutional investors including Alpha Sigma Capital, Founder and CEO of Amp Energy, Dave Rogers, Avalon Mixed Asset Strategy, and leading Canadian venture fund, Oblicas Inc., amongst others. Representatives from this round will be joining SDM as advisors to support the firm as they continue to roll out new trading products and services, identify acquisition opportunities and expand to new markets.
The firm has experienced 1011% YoY topline revenue growth and shows no signs of slowing down as the entire industry continues to see renewed interest from institutional investors. Secure Digital Markets’ swift growth is driven by the increasing demand from the traditional investment community as wealth managers, corporate treasuries, funds, HNWI, and financial service providers continue to seek more digital asset exposure on their balance sheets. On the heels of the successful bridge round, to support ongoing demand, the firm will be going to market to raise it’s Series A this November.
Zachary Friedman, SDM Founder and COO, added: “We continue to see enormous growth on the desk as institutional investors warm up to the idea that digital assets represent legitimate trading and investing opportunities. They’re realizing that service offerings such as those offered at SDM have already started to pave the way into this new asset class by providing the necessary security, technology, and liquidity to effectively enter the market.”
SDM provides liquidity to the industries most essential sectors including mining, family-offices, hedge funds, BTM’s and cryptocurrency exchanges, delivering this liquidity through cutting-edge technology, execution and service.
David Shafrir, SDM Founder and Chief Executive Officer, said: “The SDM white glove approach to client management has proven to be the clear differentiation between us and our competition. From industry stakeholders such as digital asset lenders, miners and exchanges, to institutional participants including funds, family offices, and wealth managers, SDM’s proprietary technology and trading team have become a trusted bridge helping to drive liquidity into the fastest growing sectors within the digital asset space.”
Enzo Villani, Founder of Alpha Sigma Capital, said: “Alpha Sigma Capital’s participation in this financing round is a clear and unequivocal indication of our confidence in SDM’s outlook. Bespoke digital asset services are likely to have a transformational impact on capital markets over the coming years. As one of North America’s leading digital asset trading desks, SDM is ideally placed to deliver rapid growth by capitalising on this trend.”
Executive Vice President of Sales and Trading at Secure Digital Markets, Mostafa Al-Mashita commented on the raise by saying “The bedrock to our business has always been providing liquidity to the industries most critical sectors, but over the last year we have seem a significant increase in demand from institutional counterparties outside of the industry, this trend continues to validate the thesis that digital assets continue to become a more accepted asset class.”
Of note, the recently completed financing further allowed SDM to complete its first acquisition of a European-based trading desk, thus enabling SDM to substantially improve its presence and support in Europe and grow its international institutional client base. This capital will be used to continue to advance SDM’s offerings and strengthen its position as the largest Canadian-based digital asset brokerage, ahead of its series A
About Secure Digital Markets
Secure Digital Markets is a proud part of the GDA Group, a global digital assets firm specializing in capital formation and trading services to institutional investors. SDM’s corporate culture brings together a world class team of executives who have more than 50 years of combined traditional capital markets experience and who were early blockchain and digital asset industry pioneers. The firm provides bespoke digital asset services for institutions, family offices, exchanges, miners and individuals seeking a safe and secure pathway to digital asset trading and liquidity.