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Provable Markets, a provider of technology solutions, has completed a Series A investment round securing US$8 million.
The investment round was led by Dialectic Capital Management and was supported by investors Inkef Capital and Anthemis.
According to the firm, the funds raised allow Provable Markets to build on its foundation and scale its product offering and network.
Provable Markets indicates that it is focused on market structure, leveraging subject matter expertise on its team from the evolution of electronic trading in equities.
The firm adds that its platform is “uniquely positioned with direct venue to settlement connectivity enhanced by the securities lending markets’ first open source API library and ability to route orders to all participant types”.
Clients are able to transact in cleared and non-cleared securities lending transactions with real-time lifecycle management and settlement messaging to the Depository Trust Company (DTC), which is managed as ongoing open interest via its Alternative Trading System (ATS).
Longer term, the company aims to apply similar solutions through its existing registration under the Financial Industry Regulatory Authority (FINRA) and the Securities and Exchange Commission (SEC) for options and swaps, along with other adjacent trade and post-trade heavy markets.
Following the investment round, John Fichthorn, founder of Dialectic Capital Management, will join the Provable Markets’ board of directors.
Commenting on the news, Matt Cohen, co-founder and CEO of Provable Markets, says: “Securities lending is a uniquely complex and vital component of the broader securities
financing markets that underpin the global financial system.
“In many ways, it is the first of the traditional capital markets ecosystems that rely on T-0, real-time settlement. Our platform is designed to work both independently and within the confines of the existing infrastructure to more flexibly support this dynamic execution and post-trade relationship.”
Fichthorn adds: “We look forward to supporting Matt and his team in their efforts to transform the way this crucial part of Wall Street infrastructure operates.
“Their end-to-end solution is designed by industry experts and is going to be the foundation for a total transformation in the way stock loan and securities finance operates in the future.”
Corné Jansen, venture partner at Inkef Capital, comments that the Provable team has been working to build a robust and modern infrastructure, in a part of the financial markets where participants “still had to deal with legacy systems” and, as a result, inefficiencies, a lack of interoperability and integrations.
He adds: “This round is a testament to that work and allows the company to double down on onboarding customers and expanding its product offering.”
