- Rails secured $14 million with Kraken’s investment, debuting on Ink Layer2.
- Hybrid model merges centralized speeds with on-chain custody security.
- Focused on perpetual futures; stablecoins collateralized, spot trading absent.
Rails, a new crypto exchange startup founded by BlockEQ’s team, announced on June 4, 2025, that it completed a $14 million funding round supported by Kraken, CMCC Global, and others.
The funding highlights growing market interest in hybrid exchanges blending centralized speed with decentralized custody, promising potential shifts in trading ecosystems.
Rails Raises $14 Million, Backed by Kraken
Rails announced a successful funding round of $14 million, backed by major investors such as Kraken. The team behind BlockEQ, formerly acquired by Coinsquare, leads the initiative. Exclusively deploying on Kraken’s Ink Layer2 blockchain, Rails combines centralized execution speed with on-chain custody.
The new platform will initially offer perpetual futures collateralized with stablecoins, not spot trading. This model aims to provide traders with both rapid transactions and enhanced asset security through cryptographic proofs like zero-knowledge proofs.
There are no published quotes from key players or leadership figures related to Rails or its recent funding and launch details as of June 4, 2025. Consequently, I cannot extract quotes in the requested format. If you have any other specific requests or need further information, please let me know!
Challenges and Opportunities for New Hybrid Exchange
Did you know? Hybrid exchanges like Rails often face challenges in user adoption and liquidity, influenced by previous projects such as dYdX.
Ink, currently trading at $0.00, has no circulating supply, and its fully diluted market cap is $719,592.28. Despite recent growth of 45.36% over the last 90 days, market activity remains modest, with trading volume hitting $93,112.03. These figures, sourced from CoinMarketCap on June 4, 2025, demonstrate the underlying potential as Rails launches on the Ink Layer2 blockchain.
According to Coincu analysts, the unique position of Rails within Kraken’s ecosystem may lead to increased liquidity on the Ink chain as institutional and retail interest grows. These developments signal potential ripe opportunities, provided regulatory and technological hurdles are managed efficiently.
