Jack Paul 
Cycles, a startup focused on privacy-first clearing infrastructure for crypto markets, has closed a $6.4 million funding round. The company builds an open network designed to reduce settlement friction and improve how capital is used across crypto trading and stablecoin payments.
Blockchange Ventures led the round, with participation from Coinbase Ventures, Compound VC, Primitive Ventures, and several angel investors. This new capital brings total funding to $8.7 million, following a $2.3 million pre-seed round in 2025. The team plans to use the money to expand its clearing network and roll out new products.
First Product Targets Institutional Traders
Cycles’ first institutional offering is called Cycles Prime. It lets trading firms privately net over-the-counter (OTC) obligations across the network without needing to move assets or post collateral. Lynq and FalconX are the initial partners. The idea is to remove some of the inefficiencies that come with traditional OTC settlement.
The company is also working on Cycles Pay, a payment application for businesses and individuals that uses stablecoins. It aims to make everyday payments faster and cheaper, though details are still emerging.
Team With Deep Blockchain Roots
Cycles was built by a team from Informal Systems, a blockchain infrastructure and research firm. The project is led by Ethan Buchman, co-founder of Cosmos. That background likely gives the team credibility in building complex, decentralized infrastructure.
The clearing network itself is open, meaning other firms can potentially build on top of it. That could lead to more experimentation in how crypto trades settle. For now, the focus is on getting the core infrastructure right and scaling adoption among trading firms.
Whether the privacy aspect will attract enough users remains to be seen. Many crypto traders still prioritize speed and liquidity over confidentiality. But for firms that want to avoid revealing their positions, a privacy-focused clearing layer might offer a real advantage.