Citi, JP Morgan, and State Street invest in fintech Capitolis

Friday 11 September 2020 12:49 CET | News

JP Morgan, Citigroup, and State Street have invested USD 11 million in Capitolis, a US-based technology startup that seeks to help banks use capital more efficiently, according to Reuters.

Capitolis will use the funding to grow its team and operations. The company did not disclose its valuation. Founded in 2017, Capitolis has developed software to improve liquidity in capital markets by allowing banks to source capital needed for trades from other financial institutions with large balance sheets. Regulations implemented following the 2008 financial crisis have increased the amount of capital banks must post as collateral for risky trades making it more costly for them to participate in some markets.

Capitolis’ technology also allows banks to reduce the notional value of their derivatives portfolios by replacing multiple offsetting derivatives contracts with smaller residual trades. This frees up capital but is often done manually with spreadsheets and paperwork. Capitolis’ existing investors include Spark Capital, Index Ventures, and Sequoia Capital.

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Keywords: Citi, JP Morgan, State Street, Spark Capital, Index Ventures, Sequoia Capital, Capitolis, fintech, startup, Reuters, US, United States, banks, capital, software, capital markets, liquidity, financial institutions, trading, financial crisis, risky trades, capital banks, residual trades, derivatives portfolios, investors
Categories: Banking & Fintech
Countries: United States
This article is part of category

Banking & Fintech