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Crypto Exchange Rails Secures Kraken Support with $14 Million Funding Launch

Crypto exchange startup Rails has successfully raised $14 million in a recent funding round, backed by notable investors including Kraken and CMCC Global.

This new investment brings the startup's total funding to $20 million, following a prior equity round of $6 million completed earlier this year.

Rails aims to address the essential trade-off in crypto trading between speed and security by introducing a hybrid exchange model.

The platform combines the rapid transaction capabilities of centralized exchanges with the security and transparency of self-custody solutions.

CEO Satraj Bambra highlighted that all transactions will be bundled and recorded on-chain, ensuring both verifiability and privacy for users.

By leveraging advanced cryptographic techniques such as zero-knowledge proofs and Merkle trees, Rails enhances trade validation while safeguarding personal data.

Initially, the exchange will focus on perpetual futures contracts backed by stablecoins, steering clear of spot trading for the time being.

Crucially, Rails will operate solely on Kraken’s layer-2 blockchain, Ink, which promises reduced transaction costs and improved speed.

With its innovative approach, Rails, founded by the team behind the BlockEQ wallet, marks a significant advancement in hybrid trading models within the crypto space.

As the crypto landscape continues to evolve, Rails is positioned to bridge the gap between traditional finance and decentralized solutions effectively.