Provable Markets secures $8m in latest funding round

Provable Markets has secured $8m (£6.4m) in its Series A funding round, paving the way for the New York-based securities finance fintech to scale and move longer-term into new markets such as options and swaps.

Provable Markets, which operates a US securities finance alternative trading system (ATS), said on Wednesday it has raised $8m in a Series A investment round led by Dialectic Capital Management backed by current investors Inkef Capital and Anthemis.

Provable chief executive Matt Cohen said: “Securities lending is a uniquely complex and vital component off the broader Securities Financing markets that underpin the global financial system.”

Cohen said securities lending is the first of the “traditional capital market ecosystems” to rely on real-time settlement, adding: “Our platform is designed to work both independently and within the confines of the existing infrastructure to more flexibly support this dynamic execution and post-trade relationship.”

Provable Markets’ Aurora platform matched in October 2022 the first securities lending transaction cleared through the new Depository Trust and Clearing Corporation (DTCC) securities finance transaction clearing service.

Corne Jansen, venture partner at Inkef Capital, a seed investor, said: “The team at Provable has been working hard to build a robust and modern infrastructure in a part of the financial markets where participants still had to deal with legacy systems and, as a result, inefficiencies and a lack of interoperability and integrations.”

Jansen added: “This round is a testament to that work and allows the company to double down on onboarding customers and expanding its product offering.”

Provable Markets said in a statement on Wednesday the investment will allow the firm “to scale the product offering and network”, adding: “Longer term, Provable seeks to apply similar solutions under its existing FINRA and SEC registrations for options and swaps along with other adjacent trade and post-trade heavy markets.”

Provable Markets partnered in April 2022 with fintech FIS to give clients access to the DTCC securities finance transaction clearing service.