Kraken-Backed Rails Raises $14M to Pioneer Hybrid Crypto Exchange with Self-Custody and Speed

Rails, an innovative cryptocurrency exchange, has successfully secured $14 million in a token sale to launch its hybrid trading platform. This funding round, supported by prominent investors like Kraken, Slow Ventures, and CMCC Global, builds on a $6 million seed round completed earlier this year. The platform aims to address the long-standing trade-off between security and speed in crypto trading by integrating self-custody with high-speed execution. Leveraging advanced technologies such as zero-knowledge proofs and Merkle trees, Rails ensures users maintain control over their assets while enjoying rapid transaction processing. This development marks a significant step forward in the evolution of cryptocurrency exchanges, combining the best of decentralized and centralized systems. As of June 2025, Rails is poised to set a new standard in the industry, offering a seamless and secure trading experience.

Rails Secures $14M Funding to Launch Hybrid Crypto Exchange

Rails has raised $14 million in a token sale to launch its innovative trading platform, combining self-custody with high-speed execution. The funding round, backed by Kraken, Slow Ventures, and CMCC Global, follows a $6 million seed round closed earlier this year.

The exchange aims to resolve crypto's perennial trade-off between security and speed. By leveraging zero-knowledge proofs and Merkle trees, Rails enables users to maintain custody of assets while accessing performance typically associated with centralized platforms. "Our hybrid model delivers the best of both worlds," said CEO Satraj Bambra.

Rails will operate exclusively on Kraken's layer-2 network, Ink, to enhance transaction efficiency. The platform plans to support major cryptocurrencies, though specific assets weren't disclosed.