WhiteBIT-Linked W Group Backs SwapGlobal’s Pre-IPO Derivatives Plan

W Group, the fintech group behind crypto exchange WhiteBIT, has joined Dutch investor Marcel Boekhoorn and Amsterdam-based Kenzoll Capital in backing SwapGlobal, a U.S. provider of over-the-counter derivatives for institutional clients.

SwapGlobal announced the funding Friday, Oct. 23, at 11:59 a.m. ET (15:59 UTC). The amount was not disclosed. The capital is intended to support trading operations and working capital while expanding SwapGlobal’s capacity to serve institutional customers such as hedge funds and asset managers.

SwapGlobal is preparing its first transactions involving pre-IPO shares. Its expansion plans also include non-U.S. equities, computing capacity and digital assets. The company has not named the private companies that could be referenced in its planned transactions or given a launch date.

SwapGlobal describes its over-the-counter (OTC) model as giving institutions exposure through derivatives without requiring them to hold the underlying assets. SwapGlobal’s model involves managing and hedging positions through crypto trading platforms, with qualified custodians holding collateral.

SwapGlobal lists swaps, forwards, perpetual forwards, options and spreads under one International Swaps and Derivatives Association agreement. Access is limited to Eligible Contract Participants under CFTC rules.

Volodymyr Nosov, W Group’s founder and president, said institutional capital needs “infrastructure it can trust.” Nosov also described SwapGlobal’s business as “U.S.-compliant.” Neither SwapGlobal nor its affiliates is registered with a regulatory authority. SwapGlobal plans to seek standalone swap-dealer registration with the CFTC, SEC or a self-regulatory organization, although that outcome is uncertain.

The announcement did not specify the registration or exemption basis for the planned products, their pricing or settlement terms, or when the first transactions will begin.