Cycles Secures $6.4 Million in Funding for Crypto Clearing Network

Crypto infrastructure startup Cycles has secured $6.4 million in funding led by Blockchange Ventures to accelerate the development of its privacy-preserving clearing network for crypto markets.

The new capital will help boost the rollout of the Cycles clearing network, which aims to address the gap in traditional financial markets by providing a multilateral clearing network capable of netting obligations across crypto trading and payment flows.

Cycles was founded by Cosmos co-founder Ethan Buchman and has secured support from various investors including Coinbase Ventures, Compound VC, and Primitive Ventures. The company's first products, including Cycles Prime and Cycles Pay, are designed to improve capital efficiency in the crypto market and provide a more stable and efficient way for individuals and businesses to make payments.

The clearing network is seen as an essential coordination layer that can bring the efficiency and effectiveness of clearing to new markets. It allows firms to privately net obligations across counterparties, reducing liquidity requirements and counterparty exposure without collateral, asset transfers, or changes to existing trading relationships.