Two juggernauts of the financial services industry are backing crypto startup Lukka as it vies to equip traditional Wall Street firms with its suite of data products.
In an announcement Thursday, Lukka — known for its crypto tax service LukkaTax — said that it closed a Series C fundraising round. Participants in the round included S&P Global, the firm behind Wall Street's ubiquitous indexes, and custodial bank State Street. CPA.com, which is affiliated with the American Institute of Certified Public Accountants (AICPA), also participated in the round.
CEO Robert Materazzi told The Block that the round was "very strategic in nature" with the participants all having existing commercial relationships with the firm. Already, more than 160 crypto-native hedge fund clients use Lukka's software and data products. The startup now wants to target more traditional funds through these relationships with large financial services firms.
"First step in giving them capabilities is doing so through the logos they're already customers with," he said.
Lukka did not share how much it raised, but a filing with the Securities and Exchange Commission shows it raised $15 million. The firm declined to comment on the valuation at which it raised the round as well as recent revenue figures.
The funding announcement follows news that data providers IHS Markit and S&P Dow Jones Indices would work with the firm as they move into the market for digital assets. As for S&P DJI, the firm plans to launch in 2021 its own branded index — essentially, an S&P 500-like index but for the crypto market — that uses Lukka's tools.