Tread.fi, an avant-garde algorithmic crypto trading enterprise established by an ex-Morgan Stanley executive, has triumphantly garnered $3.5 million in a pre-seed funding round.

New Form Capital spearheaded this round, with participation from Aquanow, Varys Capital, GBV Capital, Thanefield Capital, among others, Tread.fi announced on Wednesday. The funding round was orchestrated as rolling simple agreements for future equity (SAFEs) accompanied by a token side letter, paving the way for a subsequent funding round anticipated in Q1 2025, according to David Jeong, the visionary founder and CEO of Tread.fi, and a former vice president of quantitative research at Morgan Stanley.

Jeong disclosed that the funding round concluded in the first quarter of this year, though he refrained from commenting on the valuation.

What is Tread.fi?

Tread.fi is an innovative crypto trading infrastructure startup catering specifically to institutional firms. It furnishes clients with a sophisticated trading engine, cutting-edge algorithms, and direct market access for spot, futures, and options trading.

“Our ambition is to deliver the premier algorithmic trading and execution platform that harnesses the strengths of blockchain technology,” Jeong articulated.

Direct competitors of Tread.fi include Talos, CoinRoutes, and Elwood Technologies, Jeong noted. As a unique proposition, Jeong emphasized that Tread.fi empowers clients to host the trading engine on their own servers, ensuring complete trading privacy, and charges a fixed, low annual licensing fee, diverging from the traditional volume-based commission model where costs escalate with trading activity.

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“We provide a wholly private trading engine,” Jeong elucidated. “The secrecy of trading strategies and alphas is fundamental for hedge funds, hence we aligned our model with our clients by offering a trading engine devoid of centralized access that can operate privately.”

Jeong abstained from divulging the identities of Tread.fi’s clients but mentioned they include buy-side hedge funds, market-making/over-the-counter trading desks, brokers, and other trading service providers seeking institutional algorithmic direct market access functionality.

With the infusion of fresh capital, Tread.fi intends to further enhance its trading platform and expand its team. Currently, Tread.fi operates with a team of eight in Bangkok and New York, and Jeong plans to recruit additional talent in engineering, sales, and business development.