Casey Wagner

<div id="highlights-block_62671db880729" class="highlights">
 <ul>
 <li>Hack VC and Dexterity Capital led the round</li>
 <li>The protocol hopes to be the first on the Terra blockchain to operate an on-chain orderbook with the automated market maker framework</li>
 </ul>
 
</div>



Vertex Protocol, a decentralized FX protocol for multi-currency spot and derivatives trading, has closed an $8.5 million seed funding round ahead of its planned launch this summer.



<a href="https://www.crunchbase.com/organization/hack-vc" target="_blank" rel="noreferrer noopener">Hack VC</a>, the $200 million crypto seed fund headed up by Alex Pack and Ed Roman, and Dexterity Capital led the round. Other investors include Jane Street, Hudson River Trading, GSR and Huobi. 



“We are excited to partner with some of the top trading firms in the space alongside VC partners with deep knowledge in scaling new protocols,” Alwin Peng, co-founder of Vertex, said. “The capital and expertise provided will help propel our team forward and put Vertex at the forefront of [multi-currency] DeFi innovation.”



Currently, more than 99% of DeFi (decentralized finance) liquidity lies in US dollar-tied stablecoins, a spokesperson from Vertex said. While non-USD stablecoins exist, no viable protocol allows for trade between various fiat-linked tokens, which has hindered adoption and utility, the spokesperson added.



International traders looking to hedge currency risk between USD-denominated DeFi investments and their local currencies currently have few options for liquidity, and the Vertex team is hoping to change that.&nbsp;



“As one of the largest liquidity providers in crypto, we recognize the potential of this protocol to contribute towards a vibrant market for investors worldwide,” Michael Safai, managing partner at Dexterity Capital, said. “We believe these products have a place in many DeFi portfolios, which is why we’re taking an approach to investment that will help ensure liquidity and growth for Vertex far beyond launch.”



Vertex plans to be the first decentralized trading protocol on the Terra blockchain to operate an on-chain orderbook with the automated market maker (AMM) framework. The protocol, once launched, hopes to provide traders with perpetual swap offerings and a borrowing and lending facility with flexible collateral options.



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Soon-to-launch FX Trading Platform Secures $8.5M in Seed Funding

Michael Bodley

<div id="highlights-block_622a555e66b80" class="highlights">
 <ul>
 <li>The firm has been courting institutional players, including pension funds and endowments, as limited partners</li>
 <li>Hack VC is looking to hire as the firm scales its assets under management</li>
 </ul>
 
</div>



Fresh off a <a href="https://cms.blockworks.co/hack-vc-debuts-200m-early-stage-fund-targeting-crypto-web3-startups/" target="_blank" rel="noreferrer noopener">$200 million fundraise</a> for an early-stage crypto venture capital fund, Hack VC has upped the ante with a new vehicle that aims to raise $500 million, according to two sources familiar with the matter.



The San Francisco-based firm began its capital-raising efforts in recent weeks, the sources said. A spokesperson for the firm declined to comment.



The new vehicle plans to key in on Series A+ opportunities, offering a window to provide so-called acceleration capital to tack onto earlier seed investments. The firm has been courting large institutional investors, including endowments and foundations, for the fund.



Its strategy will include elements of a “classic venture approach and portfolio construction,” according to marketing materials obtained by Blockworks.&nbsp;



Hack VC ought to have “no problem” raising its target $500 million, one of the sources said, pointing to its previous backing from major crypto players — including Fidelity, Sequoia Capital and Temasek — as well as its track record of winning bets, such as Anchorage Digital, BlockFi, Maker and Terra.



Its seed fund wrapped up fundraising last year and has since deployed capital to dozens of deals, sources said. The new vehicle will allow Hack VC to double down on profitable private stakes, with startups likely giving the firm preferential access to rounds thanks to past contributions.



The firm’s timeline for raising its latest fund isn’t known. Another growth area for the operation is liquid cryptocurrency trading and market-making in DeFi, sources said. It also engages in staking, weighs in on governance issues and provides liquidity to protocols.



Hack VC’s seed fund focuses mainly on Web3 companies and DeFi (decentralized finance) startups — and its new vehicle is likely to key in on similar sectors of crypto.



The firm is run by managing partners Alex Pack, who last worked for the multi-billion dollar crypto asset manager Dragonfly Capital and who has spent time at Bain Capital, and Ed Roman, a venture capital veteran and founder of the hack.summit conference.&nbsp;



As Pack and Roman scale the firm’s assets under management, they’re looking to hire key staff, including a joint chief compliance officer, a general counsel and a head of investor relations.



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Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.