Ovex, a South Africa-based cryptocurrency exchange platform, specializing in over-the-counter (OTC) trading, has raised $4m in funding.
Quantitative cryptocurrency trading firm Alameda Research, developer of FTX, a crypto derivatives exchange, is leading the series A fundraising round.
The company intends to use the funds to expand into Dubai, Nairobi, Quebec, Nigeria, and London.
Founded in February of 2017 and led by Jonathan Ovadia, CEO, Ovex is a cryptocurrency exchange platform, specializing in OTC trading and arbitrage, offering South Africa’s largest selection of digital asset markets.
With $300m (USD) in monthly trading volume, the company delivers prime brokerage services to institutions and high net-worth individuals globally amid rising demand for crypto access.
The platform, which offers 26 cryptocurrencies and ZAR deposits, will soon offer a multitude of Fiat options. Beyond the exchange, Ovex offers investment opportunities to retail and accredited alike. They include:
- OTC Desk: A high-volume, high-liquidity over-the-counter trading venue offers high net-worth individuals and institutional investors a secure, private, and personalized trading service with an option for an extended credit line. Additionally, the platform offers execution, fast settlement, and insured custody to its clients.
- Bitcoin arbitrage: Allowing investors to earn arbitrage-trading profits on the discrepancy in the bitcoin price between the USD and the ZAR. South African customers can use their annual Single Discretionary Allowance (SDA) of R1 million and Foreign Investment Allowance (FIA) up to an additional R10 million to earn arbitrage trading profits.
- Interest: Account holders can deposit their cryptocurrency into an interest-based account and earn up to 10 percent interest annually, paid in the cryptocurrency that’s deposited.
“I’m excited about our strategic investment in OVEX, Africa’s leading OTC desk,” says Samuel Bankman-Fried, CEO of FTX and Alameda Research. “Crypto may have an enormous impact on the future of Africa, and I’m looking forward to seeing the continent’s economy drastically improve in the coming years.”