Another startup focused on a buzzy derivative popular among crypto traders has attracted serious cash. Ostium, a decentralized exchange founded by two Harvard graduates, has raised a $20 million Series A round led by marquee venture outfit General Catalyst and the crypto arm of the quantitative trading firm Jump Trading, Kaledora Kiernan-Linn, cofounder and CEO, told Fortune.
Ostium lets users bet on real-world assets like stocks, metals, and oil, as well as some cryptocurrencies. Traders can take on higher risk through perpetual futures. Unlike traditional futures, these derivatives don’t expire on a set date—assuming traders maintain the necessary margin requirements.
Other participants in the fundraise included Coinbase Ventures as well as crypto market-making firms Wintermute and GSR. The round valued the startup at about $250 million, according to a source familiar with the matter, who asked for anonymity to discuss private business dealings. Ostium had previously raised a total of about $8 million.
“We live in a world where traditional financial institutions and financial products still have a lot of relevance, but at the same time, there’s this growing group of consumers and this growing asset class in crypto,” Marc Bhargava, managing director at General Catalyst, told Fortune. “How do we fuse the two?”
