Enhanced Digital Group (EDG), a wholesaler of structured products in the digital asset space, announced today a $12.5 million seed funding raise. The round was led by WebN Group - a research-based incubator backed by Alan Howard - and Genesis, with additional investors New Form Capital, Nexo Ventures, Kenetic, BH Digital, Tribe Capital and IntoTheBlock founder Jesus Rodriguez.
EDG provides wholesale, customized structured products and derivative trading solutions to expand access to tailored financial exposure of digital assets. By enhancing the product development of both traditional financial services and crypto-native firms - including exchanges, wallets, custodians, trading firms, asset managers, corporates and broker dealers - EDG is enabling a greater sophistication of crypto derivative trading solutions in a regulated, compliant, and turnkey package.
"We founded EDG because we saw a lack of offerings for investors wanting to execute more complex trades than simple buy-and-hold strategies. Anyone with exposure to crypto should be able to replicate strategies available for traditional asset classes," said Chris Bae, CEO, EDG. "Through the backing of our world-class investors, we are solving this issue by providing the institutions that service this audience a solution that addresses the growing demands of the digital derivative consumer."
The funding will enable EDG to provide products and services to firms catering to US onshore and offshore traders, while providing working capital to expand hires for sales, technology, legal, and finance.
EDG was founded in October 2021 by a leadership team with over 60 combined years experience within derivatives trading led by Chris Bae, CEO; Leland Hensch, President; and Chetan Sennik, Head of Trading. After beginning his career at Goldman Sachs, Chris most recently served as a member of UBS Asset Management's alternative investment group, handling a portfolio totaling over $40 billion. Leland also entered the financial services industry at Goldman Sachs, where he reached the rank of Partner in the Equities Division, before transitioning to become CEO of Subversive Capital Acquisition Corp. Chetan came to EDG from Bank of America Merrill Lynch, where he served as Global Head of Currency Options and Head of AMRS Currency Trading.
"As the environment around cryptocurrency and blockchain continues to mature, we've observed a growing need for crypto-native firms capable of bridging the gap between traditional markets and this new financial ecosystem," said Joshua Lim, Head of Derivatives at Genesis. "EDG fills that gap by developing tailored strategies and financial products for institutional and retail investors that match their unique needs. The expert knowledge their team has accrued over years of working in derivatives trading will unlock a much higher degree of market functionality."
EDG has also welcomed advisors Tahreem Kampton, former Corporate Treasurer and Chief Investment Officer, Microsoft; Paul Baron, former Head of AMRS Derivative Flow Sales, Bank of America; and George Livingston, former Managing Director, Bank of America and JPMorgan Chase.
About Enhanced Digital Group
Enhanced Digital Group (EDG) is a leading provider of structured products and derivative solutions in the digital asset space. Designed to bring greater sophistication in trading strategies to the industry, EDG provides institutions with structured products designed to meet suitability characteristics of a diverse crypto client base. EDG emphasizes transparency and operational integrity across all stages of business, from initial product offerings, risk management to hedging of instruments. EDG's team of veteran traders bring over six decades of cumulative structured note and derivatives trading experience from traditional finance institutions including Goldman Sachs and Bank of America Merrill Lynch. For more information, please visit www.enhanceddigital.group/.