In a notable shift within the cryptocurrency industry, exchanges are evolving beyond mere crypto trading to cater to a wider financial audience. Liquid, which debuted in 2025 as a specialized platform for crypto-based derivatives, has recently closed an $18 million Series A funding round. This new capital injection solidifies its ambition to become a comprehensive 24/7 leveraged trading hub catering to a diverse range of retail traders.
Just months after securing $7.6 million in a seed round led by Paradigm, Liquid’s latest funding round saw participation from notable investors such as Neo, Left Lane Capital, Haun Ventures, K5 Global, SV Angel, AntiFund, and Sunflower Capital. This backing reflects growing confidence in Liquid’s innovative approach within an evolving market landscape.
Founded by Franklyn Wang, a 25-year-old Harvard graduate with a background as a quantitative researcher at Two Sigma, Liquid began as an aggregator for perpetual futures—derivatives that have gained popularity among crypto traders. Since its inception, Liquid has broadened its offering to include a range of asset classes, targeting traders not just interested in cryptocurrencies but also in traditional financial instruments.
The expansion comes at a time when crypto-related applications are increasingly venturing into non-crypto sectors. For instance, the blockchain-based platform Polymarket has seen its most popular trading markets focused on geopolitical events and sports. Similarly, Hyperliquid allows traders to engage with commodities, emphasizing the growing trend of cross-market trading behaviors.
Liquid’s aspiration to broaden its scope illustrates a shift in trading patterns, particularly as traditional assets—such as large-cap stocks and oil—begin to emulate risk assets like cryptocurrencies. Retail traders seeking a streamlined platform for various asset classes are driving this trend, according to Marc Bhargava, managing director at Liquid’s investor General Catalyst.
“The crypto degen or the day trader or the commodities junkie, all these people are chasing the same dopamine hit of doing well and having an edge on the market,” Bhargava noted, highlighting the common drive among today’s traders for competitive advantage.
The Liquid app is designed to facilitate trading across an extensive array of financial assets, including stocks, foreign currencies, Polymarket positions, and even pre-IPO company secondaries, with some markets allowing leverage of up to 200 times in certain jurisdictions.
However, the space for retail asset exchanges is becoming increasingly competitive. Well-established crypto platforms like Coinbase are diversifying their offerings to include non-crypto assets, while traditional finance platforms such as Robinhood are exploring options like tokenized stocks. Bhargava believes Liquid’s unique proposition lies in its development as a general-purpose exchange focused on leveraged trading across multiple asset classes. This strategy sets it apart from competitors that may struggle to adapt their structures and product offerings to incorporate new asset types.
“All the A/B studies you do on your own products are catered to your existing users,” he explained. “If you’re a prediction markets app and now you’re talking about going into equities or secondaries or crypto, it’s very hard to pivot, as your product and engineering teams are often specialized in a specific niche.”
As the landscape of trading evolves, Liquid’s commitment to being a versatile trading platform may position it favorably in the competitive arena of financial exchanges.
