Rho Labs funding news – London-based Rho Labs Raises $4Million in Seed Funding

With a total value of open contracts exceeding $500 trillion, rates are the largest single asset class in global financial markets. Funding was led by CoinFund, one of the earliest and most experienced cryptonative investment firms, with participation from Auros, Flow Traders, and other existing investors including Speedinvest.

Alex Ryvkin, Founder of Rho Labs commented: “We are very grateful to CoinFund and all our investors for their trust and support. Since our launch in 2022, we have observed an evolution of crypto markets with rates, especially perp funding and staking, becoming a critical component of crypto traders’ portfolio returns. With the backing of some of the most reputable VCs in TradFi and Web3 and some of the most respected liquidity providers in the space, we are well-positioned to execute our vision of building a robust and reliable rates market for the blockchain ecosystem, contributing to its maturity and RWA future-readiness.”

With perpetual future funding, staking, and lending rates all in one venue, Rho offers highly capital efficient trading. It has turned perpetual funding, the most important family of rates in crypto, into a liquid tradable asset class, opening up a raft of new trading opportunities for leveraged trading, basis trading, and enhanced yield strategies.

Rho’s trading capabilities are also particularly suited to institutions, as well as ETF and stablecoin issuers. Since its beta launch in June last year, Rho has facilitated over $7 billion of notional volume.

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Alex Felix, Co-Founder and Chief Investment Officer of CoinFund commented: "We are thrilled to support Rho Labs as they fill a critical gap in the crypto ecosystem with a marketplace of perpetual products to normalize funding and forward rates between CeFi and DeFi. Rho Labs is built by capital markets professionals to serve the budding credit opportunity. We strongly believe in Alex and his team as sophisticated institutional players to deliver the future of rate derivatives in crypto.”

Julien Auchecorne, Head of Ventures at Auros, added “At Auros, we are deeply embedded power users of the market and experienced volatility risk managers. Interest rate volatility is one of the greatest hurdles to our ability to deploy risk. Unpredictable cost of capital and inadequate hedging mechanisms remain huge hurdles by virtue of the fact that they limit the ability of institutional traders to manage their risk. Rho is developing a solution to these hurdles that will accelerate market adoption on increasingly robust foundations.”

Michael Lie, Global Head of Digital Assets at Flow Traders, also commented:“Flow Traders is proud to support Alex and the Rho team in their mission to bring interest rate derivatives on-chain. With over two decades of experience in electronifying traditional asset classes, we recognize Rho’s pivotal role in bridging a $500 trillion market on-chain while unlocking foundational products and risk management strategies for corporations, professional traders, and the broader DeFi ecosystem. Our investment reflects our commitment to advancing financial technology that enhances market efficiency and liquidity, and as institutional adoption accelerates, Rho is scaling at the perfect time to lead the evolution of on-chain interest rate derivatives.”

About Rho Labs

Rho Labs is the developer of Rho Protocol, the world’s first cryptonative interest rates market. The platform uniquely offers trading of staking, lending, and perpetual future funding rates in one venue, in a secure, efficient, and compliant manner, suitable for a wide array of cryptonative and professional traders.