Blockchain token trading firm Polychain Capital raises $10m

Polychain Capital has raised a $10 million fund backed by Andreessen Horowitz (A16z), Boost VC and Union Square Ventures (USV), among other undisclosed investors.

Polychain Capital is notably led by Olaf Carlson-Wee, the first employee of prominent bitcoin and ether exchange Coinbase. Launched in September 2016 with $5 million from 30 investors, Polychain aims to facilitate investments in blockchain-based digital tokens.

The investment in the fund signals the belief among some venture capitalists and other players in the cryptocurrency and blockchain industry that the future will consist of multiple digital assets beyond the first one, bitcoin, and that one of the best ways to participate in the blockchain revolution is through investing in the tokens rather than in digital asset companies themselves.

Polychain Capital is a hedge fund looking to maintain a portfolio of various cryptocurrencies and blockchain tokens.