Miami International Holdings Partners with Lukka, Launching Crypto Derivatives

Miami International Holdings, Inc. (MIH), the owner of Miami International Securities Exchange and a blockchain data company Lukka Inc, announced on Wednesday that they have entered into a strategic cooperation to launch crypto derivatives on MIH exchange platforms based on Lukka-supplied crypto data.

Miami International Holdings, Inc is also the owner of other options and equities trading platforms, namely, MIAX PEARL, LLC, MIAX Emerald, LLC, Minneapolis Grain Exchange, LLC, and Bermuda Stock Exchange.

The agreement provides MIH with a multi-year global license to use Lukka data to support its exchange-listed crypto derivative products, to be offered for trading on any of MIH exchange platforms.

MIH and Lukka expect the first products to include cash-settled Bitcoin and Ether futures and options, which will be listed on MGEX via the CME Globex® trading platform, subject to regulatory approval.

Other products expected to be listed will include Bitcoin Volatility (BitVol) and Ether Volatility (EthVol) futures and options, also subject to regulatory approval.

Thomas P. Gallagher, Chairman and CEO of MIH, talked about the development: “Our strategic alliance with Lukka allows us to leverage its institutional-grade crypto data to develop proprietary products in the U.S. and international regulatory frameworks that meet the emerging needs of the crypto-asset ecosystem. Lukka provides us with access to unique data and indexes that will further our objectives to introduce digital assets and products through our global group of exchanges, including futures on MGEX and innovative digital assets on BSX.”

The Retail Trend Getting Real

The movement by MIH and Lukka is the latest example showing crypto groups are pushing into the highly regulated U.S. derivatives market as they seek to fulfil demand from retail traders making massive bets on digital assets.

The crypto industry is shifting deeper into regulated markets. It looks to develop a bigger user base and challenge existing financial companies like brokerages that already provide trading in equities and other financial assets.

Crypto groups are now seeking to develop footprints in the tightly supervised U.S. market by acquiring smaller firms already holding licenses to operate in America.

In January, Coinbase bought FairX, a small Chicago futures exchange, to make the derivatives market “more approachable” through its trading app.

Late last year, the move came after struck a $216 million deal for two retail businesses from the U.K.’s I.G. Index. In October last year, FTX US also acquired derivatives platform LedgerX.

Bigger crypto exchanges are buying Commodity Futures Trading Commission-regulated platforms that allow the offering of derivatives like options and futures to retail clients because there is a big demand for leveraged products in the retail client segment.

Last year marked a breakthrough for crypto derivatives. Volumes in the derivatives market overtook the spot or cash market for the first time. In January, derivatives trading represented about three-fifths of the overall market. In February, volumes in crypto derivatives registered almost $3 trillion, accounting for more than 60% of trading in cryptocurrencies, according to data provider CryptoCompare.

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Software Provider Lukka Raises $110M in Series E at $1.3B Valuation

Lukka, an enterprise crypto-asset software, and data provider has completed its Series E fundraise, pulling $110 million from investors to raise its valuation to $1.3 billion.

According to the press release shared by the startup, participants in the funding round include Marshall Wace, Miami International Holdings, Inc., Summer Capital, and SiriusPoint Ltd., as well as participation from previous investors Soros Fund Management, Liberty City Ventures, S&P Global, and

Lukka is a data and solutions developer and currently prides itself as the “only institutional-grade crypto asset data and software provider that satisfies rigorous technical control standards, such as AICPA SOC 1 Type II and SOC 2 Type II Service Organization Controls, for its data and software products.”

“With the crypto-asset ecosystem entering a new phase of maturity, the need for Lukka’s institutional quality data and software solutions has never been more relevant,” said Robert Materazzi, CEO of Lukka. “We take pride in solving the most complex data challenges for our customers and now partnered with the world-class investors who participated in this round, we look forward to tackling all of the challenges that result from the incredible innovation that continues across the disruptive crypto industry.” 

The New York-based startup has raised its client base in the past year, and now services State Street, S&P Dow Jones Indices, and RSM, all of whom rely on its data services “to manage crypto asset data, transactions, and downstream services.” Lukka hopes to use the latest liquidity injection to accelerate its aggressive growth and global expansion strategy. 

The cryptocurrency industry saw a very milestone jump in 2021 as it relates to venture capital funding with more than $25 billion raised in total. This year has opened up with even more impressive figures.

Previously, Blockchain.News reported a $300 million funding round that pushed its valuation up to $13.3 billion in just about 4 years of operation. With the traction the ecosystem has garnered thus far, one might expect a new funding record to be achieved this year.

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Crypto-focused software firm Lukka raises $110M, reaches $1.3B valuation

Cryptocurrency accounting and data company Lukka said it had raised $110 million in a new funding round led by hedge fund giant Marshall Wace.

In a Friday announcement, Lukka said it had completed a $110 million Series E funding round led by Marshall Wace, with participation from Soros Fund Management — a fund created by billionaire investor George Soros — Liberty City Ventures, S&P Global, and accounting advisor Lukka said it planned to use the funds for “aggressive growth and global expansion strategy” with its current customer base dealing in derivatives, decentralized finance, and other products related to the crypto space.

Lukka CEO Robert Materazzi said the crypto ecosystem had entered a “new phase of maturity,” with the firm aiming to address challenges from innovative technology in the industry. The company added the S&P Dow Jones Indices, major accounting firm RSM, and financial services company State Street to its list of customers in 2021.

The crypto-focused software firm announced a $53 million raise in March 2021, and recently achieved unicorn status with a more than $1 billion valuation. Serving many active crypto funds, Lukka has reportedly processed $2.1 trillion in unique transactions to date.

Related: Lukka Co-CEO Explains How Blockchain Data Saves on Taxes

Founded in 2014, the New York-based company focuses on offering blockchain and tokenized asset data to help businesses involved in the crypto space. Among Lukka’s products are tax solutions and data valuations to a digital asset content library.