Revolutionizing Crypto Trading: Rails Launches Hybrid Exchange with $14M Backing from Kraken & More

Rails, a crypto exchange startup, has officially launched its innovative trading platform following a successful $14 million funding round. This round saw participation from heavyweight investors including Kraken, CMCC Global, Slow Ventures, Round13 Capital, and Quantstamp, bringing the company's total funding to $20 million.

A Hybrid Model for the Future

Rails introduces a hybrid model that merges the speed of centralized exchanges with the security and transparency of decentralized platforms. By utilizing a centralized matching engine for performance and settling trades on-chain, Rails ensures fast execution without compromising user control over assets.

Cutting-Edge Cryptographic Techniques

To maintain privacy and transparency, Rails employs advanced cryptographic methods such as zero-knowledge proofs and Merkle trees. These technologies allow for the verification of trades and balances without exposing sensitive user data, ensuring a secure and tamper-proof environment.

Focused on Perpetual Futures

Initially, Rails will support perpetual futures contracts collateralized with stablecoins, with plans to operate exclusively on Ink, a layer-2 blockchain developed by Kraken. This strategic focus highlights Rails' commitment to innovation and security in the crypto trading space.

Backed by Industry Leaders

"As someone who’s watched this industry wrestle with performance versus self-custody for years, Rails is the first exchange I’ve seen where neither security nor speed is compromised," remarked Sam Lessin, General Partner at Slow Ventures. This endorsement underscores the potential impact of Rails' unique approach to crypto trading.