Key Takeaways
- • N1, backed by Founders Fund, acquired 01 Exchange, a fully decentralized derivatives platform built on Solana that offers orderbook-based perpetual futures and power perpetuals without compromising decentralization.
- • 01 Exchange previously raised $2.2M in seed funding co-led by Alameda Research and Multicoin Capital, with backing from Solana Ventures, Ledger Prime, and prominent angel investors including Race Capital partners.
- • The platform delivers centralized exchange functionality through decentralized infrastructure, featuring on-chain limit orderbooks (integrated with Project Serum), cross-collateralization, cross-margining, and yield-earning deposits.
- • Strategic consolidation reflects institutional appetite for regulated, feature-rich crypto derivatives venues as evidenced by parallel market activity (Kraken's $100M Small Exchange acquisition, Crypto.com's Nadex deal).
Summary
Founders Fund-backed N1 has acquired 01 Exchange, a fully decentralized derivatives platform operating on Solana that bridges centralized exchange functionality with decentralized infrastructure. The acquisition represents a significant consolidation within the crypto derivatives ecosystem, where institutional-grade trading tools increasingly demand both regulatory clarity and decentralized architecture.
01 Exchange is engineered as a full-suite derivatives venue supporting perpetual futures and power perpetuals through a fully on-chain limit orderbook architecture, deep-integrated with Project Serum. The platform enables cross-collateralization, cross-margining, and yield-bearing deposits—features historically available only on centralized exchanges—while maintaining decentralized protocol governance. This dual positioning addresses a critical market gap for sophisticated traders seeking institutional-grade derivatives execution without counterparty custody risk.
The platform's pedigree reflects substantial institutional validation. In its previous funding round, 01 Exchange raised $2.2M in seed capital co-led by Alameda Research (the trading firm behind FTX) and Multicoin Capital, one of early Solana's largest institutional backers. Its cap table includes Solana Ventures, Ledger Prime, Pattern Research, and notable angel investors from Race Capital (Chris McCann and Edith Yeung, early backers of both FTX and Solana) alongside Alfred Cheung and Lily Liu (co-founder of Earn.com and Solana Foundation advisor).
The acquisition aligns with broader consolidation activity in crypto derivatives markets. Kraken purchased Small Exchange from IG Group for $100M to establish US-based derivatives infrastructure, while Crypto.com's parent company closed deals for Nadex and related platforms. This clustering suggests institutional capital is actively consolidating fragmented derivatives venues into regulated, feature-complete ecosystems positioned for institutional adoption.
01 Exchange is engineered as a full-suite derivatives venue supporting perpetual futures and power perpetuals through a fully on-chain limit orderbook architecture, deep-integrated with Project Serum. The platform enables cross-collateralization, cross-margining, and yield-bearing deposits—features historically available only on centralized exchanges—while maintaining decentralized protocol governance. This dual positioning addresses a critical market gap for sophisticated traders seeking institutional-grade derivatives execution without counterparty custody risk.
The platform's pedigree reflects substantial institutional validation. In its previous funding round, 01 Exchange raised $2.2M in seed capital co-led by Alameda Research (the trading firm behind FTX) and Multicoin Capital, one of early Solana's largest institutional backers. Its cap table includes Solana Ventures, Ledger Prime, Pattern Research, and notable angel investors from Race Capital (Chris McCann and Edith Yeung, early backers of both FTX and Solana) alongside Alfred Cheung and Lily Liu (co-founder of Earn.com and Solana Foundation advisor).
The acquisition aligns with broader consolidation activity in crypto derivatives markets. Kraken purchased Small Exchange from IG Group for $100M to establish US-based derivatives infrastructure, while Crypto.com's parent company closed deals for Nadex and related platforms. This clustering suggests institutional capital is actively consolidating fragmented derivatives venues into regulated, feature-complete ecosystems positioned for institutional adoption.
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