Crypto Startup Theo Raises $20 Million for Its On-Chain Trading Infrastructure

In the name of delivering Wall Street-grade trading strategies straight to everyday investors, the crypto trading infrastructure firm Theo has raised $20 million in funding.

The round was co-led by venture capital firms Hack VC and Anthos Capital, a press release issued Thursday (April 24) said.

In addition to crypto-native investors, including Manifold Trading, Mirana Ventures, Metalayer Ventures, Flowdesk, SCB, MEXC, Amber Group, and Selini Capital, there was also involvement by individuals affiliated with more universally known finance firms such as Citadel, Jane Street and JPMorgan, according to the release.

That unnamed “angel investors” from the likes of Citadel, Jane Street and JPMorgan are putting their money into crypto venture capital signals that a big shift is underway. PYMNTS described the previously keep-your-distance relationship between traditional finance and cryptocurrency. “Banks must contend with various capital requirements, which discourage high-volatility assets like cryptocurrencies from being held on balance sheets,” PYMNTS wrote.

However, thanks to the rise of stablecoins global banks like ING are testing the waters. Flipping the script, crypto companies like Paxos, Coinbase, and Circle, are pursuing bank charters, according to a Wall Street Journal report.

Theo was founded by former “quantitative traders” Abhi Pingle, Arijit Pingle and TK Kwon, the release said, noting that the trio previously worked at the trading firms Optiver and IMC.

The release described the Theo platform’s functionality as allowing users to deposit digital assets into strategy-specific vaults. These vaults then provide access to advanced trading techniques, including “high-frequency arbitrage, cross-chain funding rate optimization, and advanced hedging,” without needing to be knowledgeable about trading algorithms, the release said.

The platform reportedly also handles the execution, risk and dynamic capital allocation.

“Today’s crypto markets are fragmented and inefficient, preventing institutions and everyday users alike from accessing the full promise of global, permissionless finance. Theo … seamlessly connects large traditional players and retail participants on-chain — unlocking new levels of capital efficiency,” Abhi Pingle said in a statement.

According to the press release, Theo’s infrastructure operates on a custom validator network that enables trade execution across both centralized and decentralized exchanges. The release also said the platform also ensures security and risk management by enforcing margin requirements and systemwide overcollateralization.