A former executive from Credit Suisse, David Riegelnig, has launched Rulematch, a crypto trading platform aimed at attracting banks and securities firms globally. Riegelnig, who left Credit Suisse in 2015, co-founded the Zurich-based startup to tap into the increasing interest of traditional financial companies, especially outside the US, in digital assets.
Rulematch, having raised $14 million from investors like ConsenSys Mesh, Flow Traders, and FiveT Fintech, is open for trading Bitcoin and Ether. Unlike typical crypto exchanges that offer both trading and custody services, Rulematch positions itself as a pure trading platform, focusing on matching buying and selling interests. It operates similarly to traditional financial markets, allowing participants to settle trades daily on a net basis, enhancing capital efficiency.
While major global banks are not heavily involved in crypto trading, Riegelnig points out the active scene in Europe, the UK, and certain Asian markets where some banks have ventured into crypto. Rulematch currently has seven banks and securities firms as initial clients, including Banco Bilbao Vizcaya Argentaria’s Swiss entity and DLT Finance. Nasdaq Inc.’s software is used for trade matching, risk monitoring, and detecting potential market abuse.
The crypto market has seen a partial recovery from a slump in 2022, driven in part by expectations that the US will soon approve its first spot Bitcoin exchange-traded funds. The US Securities and Exchange Commission Chair, Gary Gensler, has criticized existing crypto platforms for not separating different parts of their businesses, like custody, market-making, and trading, leading to potential conflicts of interest. In this context, Rulematch’s focus on a pure trading platform aligns with the evolving regulatory landscape.