Zero Hash

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Zero Hash
Zero hash logo.png
Founded 2015
Headquarters Chicago, Illinois, USA
Key People Edward Woodford, Co-Founder, CEO; Brian Liston, Co-Founder, COO
Employees 11-50
Products Cryptocurrency settlements
Twitter @ZerohashX
LinkedIn Profile
Website Zero Hash Home
Blog Seed CX Blog

Zero Hash is the successor to Seed CX, a well-funded start up that after five years of attempting to trade industrial hemp swaps, bitcoin swaps and spot cryptocurrencies, abandoned trading platforms and ended up operating Zero Hash, its cryptocurrency transaction settlement subsidiary.[1]

Overview

Seed was organized in July 2015 and launched with $3.4 million in financing later that year. It filed an application with the CFTC in February 2016 to trade swaps on industrial hemp.[2] Seed SEF was registered by the CFTC on August 23, 2016, as a swap execution facility.[3]

One year later, in August 2017, Seed CX announced that it had sold its futures division, which did not operate, to Dough, one of the original investors in Seed CX. Dough's CEO is Tom Sosnoff, a founder of thinkorswim, an options trading platform acquired by TD Ameritrade. [4]

Seed CX announced on December 20, 2017, that it had sold a controlling stake to Bittrex, a major cryptocurrency exchange based in Seattle, Washington.[5] Bittrex's CEO Bill Shihara joined the Seed board of directors.[6] Seed CX CEO Edward Woodford told John Lothian News that as of mid-2018, Bittrex no longer had any ownership in the company, which was also confirmed by representatives from Bittrex.

Not yet having launched any trading, Seed announced on September 12, 2018, that it closed a Series B funding of $15 million in a round led by Bain Ventures and including OKCoin, the U.S. affiliate of Hong Kong-based OKEx, as well as CMT Digital.[7][8]

Seed SEF, which had not yet operated, was declared dormant by the CFTC on September 1, 2019.[9]

Seed CX amended its 2018 Form D securities offering registration with the U.S. Securities and Exchange Commission in September 2019, indicating that it had newly raised approximately another $2 million from 18 new investors and was seeking to raise another $12 million in equity funding. That funding, if completed would have brought Seed CX to more than $30 million in equity financing.[10]

In April 2020, Seed CX amended its offering registration to indicate that it had issued a $750,000 convertible note to a single investor.[11]

On June 10, 2020, Seed CX said that it would close its cryptocurrency trading platform on June 12 in order to focus on its settlement business. Asserting that Seed was currently well capitalized, Woodford said the company was about to close another round of financing.[12]

Zero Hash closed a $3.75 million Series C funding on September 1, 2020 under the name Seed CX according to records at the U.S. Securities and Exchange Commission. [13]

Products and Services

Seed CX announced in January 2019 that it would offer a new wallet designed to add security and transparency for its customers. The new wallet offered on-chain settlement and each customer was to have a unique wallet rather than use an omnibus wallet.[14]

In March 2019, Seed announced that Zero Hash, a subsidiary of the company that offers digital asset and fiat currency custody services, launched blockchain-based OTC trade settlement services for digital assets.[15] Seed announced two months later that it had entered into a partnership with TradAir, a fintech developer specializing in creating trading software for banks, brokers, and other institutional traders, in order to improve the settlement capabilities of Zero Hash.[16]

Seed CX's "Seed Digital Commodities Market" was a cryptocurrency trading platform, supporting fiat-crypto trading pairs for the U.S. dollar (USD) and including market surveillance.[17] The platform went live in Q1 of 2019, launching with USD-trading pairs for bitcoin, and later added Bitcoin Cash, Ether, and Litecoin.[18]

The New York State Department of Financial Services granted Seed CX "BitLicenses" for its spot trading platform and for Zero Hash on July 15, 2019.[19]

Key People

  • Edward Woodford - Co-Founder, CEO
  • Brian Liston - Co-Founder, COO

References

  1. Seed CX to Close Exchange, Focus on Settlements in Company Shift. CoinDesk.
  2. A Cannabis Futures Market? Seed CX Aims to Pave the Way for Hemp. Finance Magnates.
  3. Regulators Approve Hemp Derivatives Exchange. Wall Street Journal.
  4. Dough buys fintech startup Seed Futures. Crian's Chicago Business.
  5. For this firm, bitcoin is more attractive than weed. Crain's Chicago Business.
  6. Bittrex Inc. takes controlling strategic stake in Seed opening new trading opportunities for Institutional Crypto Trading. Globe Newswire.
  7. Seed CX gets $15 million more in funding. Crain's Chicago Business.
  8. Seed CX Raises $15 Million in Series B Funding Round. GlobenNewsWire.
  9. Swap Execution Facilities. Commodity Futures Trading Commission.
  10. Form D. U.S. Securities and Exchange Commission.
  11. Form D. U.S. Securities and Exchange Commission.
  12. Refining our business model: closing the exchange & focusing on settlement. Medium.
  13. Form D. U.S. Securities and Exchange Commission.
  14. Seed CX Launches New Wallet Features for Institutional Clients. Coindesk.
  15. Seed CX Launches On-Chain Settlement Network for OTC Digital Asset Transactions via Zero Hash Subsidiary. Globenewswire.
  16. Seed CX Launches On-Chain Settlement Network for OTC Digital Asset Transactions via Zero Hash Subsidiary. Globenewswire.
  17. Website. Seed CX.
  18. Seed CX Eyes Crypto Derivatives. Markets Media.
  19. New York Grants Bitlicense to Institutional Crypto Exchange Seed CX. CoinDesk.