Flowdesk raises $102 million to expand cryptocurrency market services

Flowdesk raises $102 million to expand cryptocurrency market services

Flowdesk, a France-based digital asset trading and market maker, has announced that it has raised $102 million in a new funding round, with 90% of the capital coming from equity investors and the remaining $10.2 million in debt provided by BlackRock.

The round was led by HV Capital, with participation from major investment funds such as Eurazeo, Cathay Innovation and ISAI. HV Capital also won a seat on Flowdesk’s board. Flowdesk CEO Guilhem Chaumont said the debt financing was a strategy to help finance expansion without selling additional shares, allowing the company to maintain control while still having more resources for growth.

While Flowdesk did not disclose its current valuation, it said it is in a strong financial position, with revenue growing eightfold by 2024. Flowdesk’s latest funding comes just a year after its $50 million Series B round announced in January 2024, which valued the company at $250 million at the time.

Expanding into crypto credit and the Middle East market

Founded in 2020, Flowdesk provides crypto-related services, including market making, liquidity for crypto ETFs, OTC trading, fund management, and custody solutions. With the new capital, Flowdesk plans to expand its OTC trading business and build a dedicated crypto credit division. According to CEO Chaumont, the company will act as an institutional credit provider, helping to match supply and demand for liquidity at competitive interest rates. Some of the planned services include:

• Funding using the project's own token (e.g. lending based on a platform's token).

• Bitcoin Collateral Loans for High Net Worth Clients.

• Leveraged solutions for institutional investors.

In addition, Flowdesk also plans to expand into the Middle East, with the UAE as its next destination after success in France, Singapore and the US.

Focus on tokenization and regulatory compliance

Flowdesk identifies Real World Asset (RWA) tokenization as a key trend, especially as institutional demand for on-chain assets increases. The company has been working with token issuers to provide liquidity and plans to expand into stablecoins, tokenized securities, and money market funds (MMFs). Additionally, Flowdesk is preparing for compliance with the European Union’s Markets in Crypto-Assets (MiCA) regulatory framework, which is expected to come into effect in 2025.

With new capital and a clear expansion strategy, Flowdesk is asserting its position in the crypto market making space while meeting the growing needs of the market and institutional investors.