New York FinTech Transcend is aiming to significantly upscale its collateral management solutions for custodians and investment banks following a $10 million fund raising round.
The financing round was led by FinTech venture capital firm Nyca Partners, with the support of an undisclosed global custody bank.
Transcend, founded by the former global head of prime finance, futures and OTC clearing technology at Citi, aims to use the new funding to rapidly scale product and sales infrastructure for custodian banks and prime brokers.
“Our investors and clients share our vision for industry transformation,” said Bimal Kadikar, CEO of Transcend. “As a team, we are not alone in believing that analytics, optimisation and automation can provide a significant competitive advantage for firms’ funding and liquidity challenges. This investment will enable us to accelerate our global ambition and target our solutions across a range of sell-side and buy-side stakeholders.”
Transcend collateral management technology enables firms to perform a range of global inventory optimisation and real-time inventory management functions on a single platform.
Collateral optimisation has become increasingly important for both banks and buy-side firms following the onset of the uncleared margin rules.
Earlier this year, the FinTech firm launched a new optimisation framework with end-to-end tri-party optimisation and allocation capabilities via a straight-through processing (STP) model.
Transcend has also made 31 new hires this year, including appointing Lis Hadingham from CloudMargin as a sales director and Mark Jennis, the former executive chairman of DTCC-Euroclear GlobalCollateral, as a senior product specialist. Transcend also plans to open its first European office in the first half of next year.