Secure Digital Markets Receives $4 Million in Institutional Investment after 10X YoY Growth

The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.

Secure Digital Markets (SDM), Canada’s leading digital asset brokerage, has announced the completion of a strategic bridge investment round worth $4 million. This capital injection was invested at an undisclosed 9-figure valuation and represented the first time that SDM has taken in external funding, the company said. SDM says the funds will ensure that the firm continues to lead the market in providing services for spot and block execution, liquidity, and settlement to key industry verticals  - mining, family offices, hedge funds, BTMs, and crypto exchanges.

SDM experienced over 1,000% year-on-year growth and says that it continues to expand into new markets. The company’s rapid growth has been driven in part by rising demand from the traditional investment community, particularly wealth managers, corporate treasuries, funds, HNWI, and financial service providers, all of whom seek increased exposure to digital assets and the opportunities that they bring.

“We continue to see enormous growth as institutional investors warm up to the idea that digital assets represent legitimate trading and investing opportunities. They are quickly realizing that service offerings such as those offered by SDM have already started to pave the way into this new asset class by providing the necessary security, technology, and liquidity to effectively enter the market,” Zachary Friedman, the Founder and COO at SDM, said in a statement.

The bridge funds were comprised of convertible promissory notes (60%) and equity (40%). Recognized blue-chip institutional investors that participated in the round include Alpha Sigma Capital, Avalon Mixed Asset Strategy, Oblicas, Inc., as well as Dave Rogers, Founder and CEO of Amp Energy. SDM said these bridge-round investors will join as advisors to support the firm as it continues to roll out new trading products and services and identifies acquisition opportunities while expanding into new markets.

“Alpha Sigma Capital’s participation in this financing round is an unequivocal indication of our confidence in SDM’s outlook. Bespoke digital asset services are likely to have a transformational impact on capital markets over the coming years. As one of North America’s leading digital asset trading desks, SDM is ideally placed to deliver rapid growth by capitalizing on this trend,” said Enzo Villani, the Founder of Alpha Sigma Capital. 

Recent financing has allowed SDM to complete its first acquisition of a European-based trading desk. This will help SDM to improve its presence and support in Europe and grow its international institutional client base. This capital will also be used to continue to advance SDM’s offerings and strengthen its leadership position as the largest Canadian-based digital asset brokerage. Also, thanks to the success of the bridge round and unrelenting demand for its investment services, SDM will be raising its Series A in November.

“SDM’s white-glove approach to client management has proven to be the clear differentiation between us and our competition. From industry stakeholders such as digital asset lenders, miners, and exchanges, to institutional participants including funds, family offices, and wealth managers, SDM’s proprietary technology and the trading team have become a trusted bridge helping to drive liquidity into the fastest growing sectors within the digital asset space,” said David Shafrir, the Founder and CEO at SDM. 

Secure Digital Markets is a part of the GDA Group - a global digital assets firm specializing in providing capital formation and trading services to institutional investors. SDM states that its corporate culture brings together a world-class team of executives who have more than 50 years of combined traditional capital markets experience and who are all early blockchain and digital asset industry pioneers.

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The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.