Rails, a crypto startup founded by Canadian entrepreneurs, has launched its hybrid crypto exchange in the U.S. following a $14 million USD (~$19.1M CAD) raise via token warrant sales.
The funding round, led by Slow Ventures, also included Kraken, CMCC Global, Quantstamp, and Round13 Capital, bringing Rails’ total funding to around $20 million.
Building a new kind of exchange
The Miami-headquartered, Toronto-rooted startup is developing a platform that combines the speed and performance of centralized exchanges with the security and self-custody of decentralized platforms. The goal? Give traders “the best of both worlds,” according to co-founder and CEO Satraj Bambra.
Rails enables users to maintain control over their assets while enjoying high-frequency, low-latency trading—something typically missing from decentralized alternatives.
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Experienced founders and familiar backers
Founded in 2023 by Satraj and Megha Bambra—who previously built and sold BlockEQ and B House—Rails is helmed by a team of tech and crypto veterans. The startup also counts Rick Marini (ex-Grindr) and Brent Vegliacich as co-founders.
Satraj Bambra is also managing partner at Round13’s Digital Asset Fund but recused himself from Rails-related decisions to avoid conflicts of interest.
Growth plans and regulatory reflections
Rails plans to use the new capital to boost platform liquidity, scale its team (currently 75% Canadian), and expand its product offerings. While much of the company’s engineering talent remains in Toronto, its headquarters are based in the U.S., where Bambra says crypto regulation is more welcoming under current leadership.
“We’ve been de-banked simply for building in crypto,” Bambra said of Canada’s environment, noting the company’s decision to go where it’s “more welcome.”
A new contender in the crypto exchange space
Rails aims to disrupt the balance between speed and security in digital trading. With its hybrid architecture and $14 million in fresh funding, the startup joins a wave of platforms rethinking what the next generation of crypto exchanges should look like.
