Bitcoin derivatives market receives new investment from Nasdaq company

Key facts:

LN Markets has the potential to become one of the biggest players in the market, according to Arcane.

Founders of LN Markets, Fulgur Ventures and the Bitfinex exchange, they are shareholders of LN Markets.

Arcane Crypto invested USD 1.8 million in LN Markets, thus increasing its stake in the company from 7% to 16%.

On April 16, Arcane issued a statement informing about the reasons why increased its stake in LN Markets. Both companies, according to the statement, share a positive vision about the Bitcoin Lightning network and are committed to strengthening the infrastructure of the ecosystem with the advantages of this second layer solution.

“Bitcoin is the best collateral and the best infrastructure to build the future of digital finance,” says Côme Jean Jarry, co-founder of LN Markets.

Arcane is a Nasdaq-listed digital asset company looking to invest in high-potential projects in the field.

The company has seen in LN Markets a highly scalable product with the potential to become one of the major players in the market in the coming years, says Torbjørn Bull Jenssen, CEO of Arcane.

LN Markets Leverages the Advantages of Bitcoin’s Lightning Network

LN Markets has been able to take advantage of Lightning technology, such as instant and almost free bitcoin transactions.

In its platform, offer the possibility of trading bitcoin derivatives with leverage and collateralization. The statement reports that these characteristics, plus the high liquidity of bitcoin that operates 365 days a year, limit exposure to counterparty risk.

«The LN Markets platform allows practically anyone with a Lightning-powered Bitcoin wallet, you can quickly access derivatives trading directly from your wallet, “they explain in the statement.

Among the wallets that support this second layer solution over Bitcoin is Muun, whose characteristics have been recently reviewed by this medium.

To start using the LN Market platform, no email or registration is required. The user can connect their funds instantly, directly from any Lightning wallet and use a leverage of up to 50 times.

The growth of LN Markets has been exponential

Despite the fact that LN Markets is a new company, it has the ability to scale its business globally thanks to its technology, according to the statement. Trading volume on the platform increased by USD 5 million in the second quarter of 2020 to USD 76 million in the first quarter of 2021.

Another sign of the potential of LN Markets is that its founder, as well as those of Fulgur Ventures and the well-known exchange Bitfinex, are shareholders of the company.

Last year was the launch of LN Markets as the first derivatives management market on the Lightning Network, as reported by CryptoNews.