The crypto industry has long defined itself in opposition to traditional finance but, in recent years, the two worlds are on a path to convergence. The latest example is Variational, a startup that has built a protocol for decentralized derivatives trading, but one that is aimed at gathering liquidity from traditional finance dealers rather than from niche crypto shops. The company believes its blockchain-based platform can challenge longtime incumbents when it comes to offering a wide array of derivatives.
This pitch has proved popular with investors as Variational on Wednesday announced it has raised a $50 million Series A funding round led by Dragonfly Capital, with participation from Bain Capital Crypto and Coinbase Ventures. Bain Capital Crypto led Variational’s $10.3 million seed round, which closed in 2021 but was announced in 2024.
