1Konto, a digital asset and FX focused broker, has announced the completion of a successful capital raise. The funding, consisting of both angel funding and seed funding, totaled more than $3.8 million. 1Konto plans to use the proceeds to fund its upcoming agency execution service, planned for release in the second quarter of this year.
“We first completed a previously unannounced angel round, which raised $875,000, and then we completed an additional $3 million in seed funding,” said 1Konto Cofounder and CEO Edwin Handschuh. “The angel round involved a number of individual investors associated with a private equity firm from California, and the seed round capital came from Terra Crypto Capital.”
1Konto is anticipating the release of its game-changing execution service this quarter.
“This funding allows us to take a product that is already out there, an API routing service that’s completed over 100,000 transactions and $50 million in volume in production, and we’re bringing that in house,” added Handschuh. “We needed to raise capital in order to increase team size, as well as to have the liquidity for venues, exchanges and other key components.”
1Konto has long recognized fundamental challenges in the existing digital-asset space, including fragmented markets and servicing non-USD clients. Other challenges include poor pricing and liquidity as broker dealers are forced to open multiple exchange accounts and invest in custom routing tech to improve access. Additionally, the company notes that juggling multiple venues, settlement cycles and lines of credit is operationally complex and prone to error.
With those pain points in mind, 1Konto offers a simple solution. The company has created a single onboard access point to more than 2,500 high-quality markets and a proprietary routing engine that analyzes millions of routes, instantly uncovering pricing dislocations and price improvements that are passed on to their counterparties. In addition, the company streams prices in 20 digital assets and 7 fiats for 351 unique pairs and provides single-account access to the markets, making programmatic or on-demand settlement easy and simple.
“We’re thrilled that we found investors that are aligned with how we see not only the current market but also future market needs and available opportunities, allowing us to build this execution service,” concluded Handschuh. “We are excited to be moving forward on this service that we’ve been looking to launch for some time.”