Crypto exchange Rails, founded by the BlockEQ team, announced on June 4, 2025, that it completed a $14 million funding round supported by investors such as Kraken and CMCC Global.
Rails Secures Funding
Rails has raised $14 million in its funding round, with major investors including Kraken and CMCC Global. The team behind BlockEQ, known for its work in the crypto space, is leading the project, which will launch on Kraken’s Ink Layer2 blockchain.
Hybrid Exchange Model
The platform will primarily offer perpetual futures collateralized with stablecoins, excluding spot trading. This model aims to provide traders with fast transactions and enhanced asset security through cryptographic proofs like zero-knowledge proofs.
Challenges and Opportunities for New Hybrid Exchange
Hybrid exchanges like Rails often face challenges in user adoption and liquidity, as illustrated by recent projects such as dYdX. Despite the current trading activity of the Ink token, analysts note potential opportunities for increased liquidity in Kraken’s ecosystem, provided that regulatory and technological hurdles are effectively managed.
The launch of Rails highlights the growing interest in hybrid exchanges, which offer a blend of centralized trading speed and decentralized storage security. The project's success will largely depend on how it addresses challenges in regulation and technology.
