LN Markets
The first bitcoin derivatives exchange built on top of the Lightning Network.
| Date | Investors | Amount | Round |
|---|---|---|---|
| investor investor investor | €0.0 | round | |
N/A | Seed | ||
| Total Funding | 000k | ||
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LN Markets operates a Bitcoin derivatives trading platform accessible exclusively through the Lightning Network, aiming to streamline the trading experience. The company, founded in 2019 by Côme Jean-Jarry, Victor Afanassieff, and Romain Rouphael, is a product of ITŌ, a startup established by the trio who bring with them years of experience in financial markets. Their journey began after working in Hong Kong's financial sector, where they recognized Bitcoin's potential. They returned to France in 2016 to establish a Bitcoin consulting firm, and with the emergence of the Lightning Network in 2019, they saw an opportunity to create a new kind of trading infrastructure.
The platform's core offering is simplifying the trading process by allowing users to trade directly from their personal Lightning wallets. This model minimizes counterparty risk as funds not in a position do not need to be held on the exchange. The business generates revenue by charging a 0.1% fee per trade, avoiding complex fee structures like funding rates or maintenance margins. Initially targeting retail traders, LN Markets allows for instant account creation and fund transfers. The platform launched on mainnet in March 2020 and has since processed a significant volume of trades.
The product suite includes Bitcoin perpetual futures with up to 100x leverage and Bitcoin options, supported by advanced trading tools and API access. A key feature is its aggregated liquidity, which pools liquidity from multiple venues. Looking ahead, the company plans to introduce USDT-settled linear futures and non-custodial options trading using Discreet Log Contracts (DLCs). To cater to institutional investors, the company is developing DLC Markets, a platform for managing over-the-counter (OTC) derivatives trading with reduced counterparty risk. The company has secured seed funding from investors including Bitfinex, Arcane Crypto, Fulgur Ventures, ego death capital, and Lemniscap, which will support team expansion and further product development. Keywords: Bitcoin derivatives, Lightning Network trading, crypto derivatives exchange, perpetual futures, Bitcoin options, instant settlement, low-custody trading, aggregated liquidity, financial markets, Côme Jean-Jarry, Victor Afanassieff, Romain Rouphael, ITŌ, DLC Markets, API trading, non-custodial trading, crypto trading tools, digital asset trading, BTC-USD, derivatives platform