LO:TECH Raises $12M for U.S. and Asia Expansion

What to Know

LO:TECH raised $12 million in a Series A round led by MMC.
The London-based crypto market maker plans to expand into New York and Singapore.
Existing investors Faction and 13 Books Capital participated, alongside Atka.
The firm says activity going live on Nov. 2 falls within its existing proprietary trading and digital asset liquidity operations.
LO:TECH said it is preparing a separate regulatory application and will not offer regulated services before approval.
The company is targeting liquidity and execution across digital assets and tokenized traditional assets.
A World Federation of Exchanges study published Oct. 20 found traditional exchanges remain the main source of price discovery for third-party tokenized stocks.
LO:TECH said it makes markets on Hyperliquid, Binance, Bybit and OKX, as well as major real-world asset venues.
The firm described monthly trading volumes as being in the billions but did not disclose exact figures.
LO:TECH says it serves more than 50 institutional clients across market making, market data and execution services.

LO:TECH Targets Global Expansion After Series A Raise

LO:TECH, a London-based crypto market maker, has raised $12 million in Series A financing as it looks to broaden its institutional trading footprint across the U.S. and Asia-Pacific. The round was led by MMC, with participation from existing investors Faction and 13 Books Capital, as well as Atka. The company plans to use the new capital to establish a presence in New York and Singapore, two major hubs for global trading, digital asset infrastructure and institutional financial services.

The raise comes as institutional crypto trading continues to evolve beyond spot token markets into a wider range of execution, liquidity and data services. LO:TECH is positioning itself as a firm that can serve professional clients across digital assets, traditional assets and emerging tokenized markets. Its expansion into New York and Singapore is notable because both locations sit at the intersection of capital markets, regulation and institutional demand. For a market maker, local presence can matter, particularly when servicing clients that expect robust operations, regional coverage and direct engagement with trading counterparties.

FXCOINZ understands the company is seeking to build on its existing market-making role rather than immediately launch a fully regulated suite of new services. LO:TECH said the activity going live on Nov. 2 falls within its existing operations, specifically proprietary trading and providing liquidity in digital asset markets. The firm said a regulatory application is being prepared separately and added that it will not offer regulated services before receiving approval.

Institutional Execution Ambitions Meet Regulatory Caution

LO:TECH’s announcement described execution services across traditional, digital and prediction markets, but the company has clarified that the immediate launch is narrower. That distinction matters in a market where institutional counterparties often separate unregulated proprietary trading, market making, liquidity provision and regulated execution activity. By emphasizing that regulated services will not be offered before approval, LO:TECH is signaling a compliance-aware approach at a time when digital asset firms are being pushed to define their activities more clearly.

The company has not identified the jurisdiction for its regulatory application. It also said U.S. licenses are still being explored. That leaves important details unresolved, including which products may eventually be offered, where they may be offered and what regulatory permissions would be required. Still, the fundraising round gives LO:TECH additional resources to prepare for overseas expansion and to build out institutional execution capabilities.

Market participants increasingly view institutional crypto trading as a business defined not only by access to exchanges but by liquidity quality, operational reliability, hedging capacity and pricing infrastructure. For firms seeking to trade in size, the difference between thin liquidity and deep liquidity can affect execution outcomes, slippage and risk management. LO:TECH’s stated focus on market making, market data and execution services places it in the competitive layer of the market where clients demand speed, transparency and the ability to trade across multiple venues.

Tokenized Stocks Remain a Developing Opportunity

A major theme behind LO:TECH’s expansion is the growing interest in tokenized traditional assets, including tokenized stocks. These instruments aim to represent exposure to conventional securities on blockchain-based rails, potentially enabling trading outside traditional market hours and across digital asset venues. LO:TECH is betting on a market gap in tokenized stock trading, particularly around liquidity and execution. However, the firm did not say whether it currently trades tokenized stocks.

The opportunity is still developing. A World Federation of Exchanges study published Oct. 20 found that traditional exchanges remain the main source of price discovery for third-party tokenized stocks. When token prices diverge from the prices of the underlying shares, the tokens generally adjust toward the underlying equity market rather than the other way around. That finding underscores a key reality for tokenized equities: while blockchain-based versions may offer new trading formats, established stock exchanges continue to anchor pricing.

This creates both a challenge and an opportunity for crypto-native trading firms. On one hand, tokenized stocks may need better liquidity, pricing feeds and arbitrage mechanisms to become more efficient. On the other hand, the dependence on underlying stock markets means tokenized assets remain closely tied to traditional market hours and legacy exchange infrastructure. For round-the-clock tokenized stock trading to mature, traders need credible reference prices, reliable hedging methods and venues capable of handling demand when traditional exchanges are closed.

Infrastructure Providers Move Into After-Hours Pricing

The infrastructure gap in tokenized markets is already attracting other players. Chainlink recently introduced weekend and holiday pricing using perpetual futures quotes when traditional markets are closed, with decentralized lender Aave as its launch partner. That move highlights the market’s search for better pricing methods in periods when underlying equity markets are not open. For tokenized assets, the question is not just whether a token can trade at any hour, but whether traders have enough trusted information to price and hedge the exposure responsibly.

LO:TECH’s ambitions sit inside that broader shift. Liquidity providers can help reduce spreads and improve execution, but they still need reliable pricing inputs and risk management systems. If tokenized stocks trade while the primary equity market is closed, liquidity providers may rely on proxies, derivatives, futures markets or other signals. Each approach can help, but each also carries basis risk, especially when the tokenized instrument is expected to track an underlying share that is not actively trading at that moment.

Technical traders and institutional desks are likely to watch whether tokenized markets can develop independent liquidity without losing their link to underlying securities. The World Federation of Exchanges findings suggest the link remains strong and that traditional exchanges still dominate price discovery. For LO:TECH, that means its expansion into tokenized traditional assets will likely require careful pricing models, robust hedging and a clear understanding of where market risk truly sits.

Trading Venues and Client Base

LO:TECH said it already makes markets on Hyperliquid, Binance, Bybit and OKX, as well as what it described as all major real-world asset venues. The company also described its monthly trading volumes as being in the billions, though it declined to disclose exact volumes. It also did not provide client names or details on how it prices and hedges positions. Those omissions leave open questions about the scale, concentration and mechanics of its trading operation, though the firm’s stated venue coverage points to a multi-platform strategy.

The company says it serves more than 50 institutional clients across market making, market data and execution services. It also said revenue had tripled and headcount doubled since its August 2025 funding round. Those statements indicate growth momentum, though without specific revenue figures or headcount totals, outside observers have limited visibility into the company’s operating scale. Even so, the combination of fundraising, overseas expansion plans and institutional client growth suggests LO:TECH is trying to move deeper into the professional trading infrastructure stack.

For institutional clients, market makers can play a critical role by providing liquidity where order books may otherwise be fragmented. Crypto markets remain spread across centralized exchanges, decentralized venues and specialist platforms. Tokenized asset markets add another layer of complexity because pricing may depend on both crypto market microstructure and traditional securities markets. A firm that can connect liquidity across these environments may find demand from funds, trading firms and platforms seeking efficient execution.

What the Funding Means for Crypto Market Structure

LO:TECH’s $12 million raise reflects continuing investor interest in the institutional layer of digital assets, even as the sector becomes more selective. Rather than focusing only on retail-facing products, many crypto infrastructure firms are building services aimed at professional counterparties. These services can include liquidity provision, data, execution and market access. In that environment, firms with strong risk systems and exchange connectivity may have an advantage.

The move also highlights the growing overlap between crypto markets and traditional finance. Tokenized real-world assets, tokenized stocks and prediction markets are all part of a broader push to expand blockchain-based trading beyond native crypto tokens. Yet the path remains constrained by regulation, market infrastructure and the need for credible price discovery. LO:TECH’s decision to prepare regulatory applications before offering regulated services reflects the practical reality that institutional growth depends on more than technology alone.

For now, LO:TECH’s near-term activity remains anchored in proprietary trading and liquidity provision in digital asset markets. Its longer-term plans point toward broader institutional execution across both digital and tokenized traditional assets. The key question is how quickly tokenized markets can develop the infrastructure needed to support deeper liquidity and reliable pricing, especially outside conventional market hours. Until then, traditional exchanges are likely to remain central to price discovery for tokenized stocks, even as crypto-native firms build tools and services around the edges.

Frequently Asked Questions (FAQs)

How much did LO:TECH raise?

LO:TECH raised $12 million in a Series A funding round led by MMC.

Who participated in the funding round?

Existing investors Faction and 13 Books Capital participated in the round, alongside Atka.

Where does LO:TECH plan to expand?

The company plans to establish a presence in New York and Singapore as part of its U.S. and Asia-Pacific expansion strategy.

What services is LO:TECH currently launching?

LO:TECH said the activity going live on Nov. 2 falls within its existing proprietary trading and digital asset liquidity operations.

Will LO:TECH offer regulated services immediately?

No. The company said it is preparing a regulatory application separately and will not offer regulated services before approval.

Does LO:TECH trade tokenized stocks now?

The company is targeting liquidity and execution across digital assets and tokenized traditional assets, but it did not say whether it currently trades tokenized stocks.

Why are tokenized stocks important to this story?

Tokenized stocks are a key area of interest because LO:TECH is betting on demand for liquidity and execution in markets that may trade beyond traditional exchange hours.

What did the World Federation of Exchanges study find?

The study published Oct. 20 found that traditional exchanges remain the main source of price discovery for third-party tokenized stocks, with tokens generally adjusting toward underlying shares when prices diverge.