Backpack Exchange eyes $50M at $1B valuation while expanding regulated derivatives and blockchain equities
Backpack Exchange, led by Solana developer Armani Ferrante and ex-FTX executive Tristan Yver, is in talks to raise roughly $50 million at a $1 billion pre-money valuation, with the final amount potentially higher depending on investor demand. The Singapore-headquartered platform combines centralized trading with a non-custodial wallet and has previously raised $17 million in a February 2024 Series A at a $120 million valuation. Backpack has focused on regulatory credentials — securing a VARA VASP license in Dubai (Nov 2023) and MiFID II authorization to offer EU derivatives — and claims to be the first centralized exchange to natively issue SEC-registered equities on-chain. Proceeds are earmarked for global expansion, licensing (VASP/MiCA-style and selective U.S. state permissions), banking and payments relationships, infrastructure upgrades (matching engine, custody, proof-of-reserves) and new regulated products such as custody, staking and institutional trading services. Parallel to the equity round, Backpack disclosed a Token Generation Event where 25% of the token supply (250 million tokens) will be released at TGE — mainly to point holders and a small allocation to NFT holders — designed to boost initial liquidity and align community ownership while restricting founder/early investor exits ahead of a planned U.S. IPO. For traders: the raise and regulatory progress position Backpack as a growing, compliance-focused mid-tier exchange that could attract institutional flow and on-chain securities demand. Key risks include execution (delivering secure custody and proofs), regulatory uncertainty in major markets and competition from entrenched exchanges — factors that will determine whether the valuation and expansion translate into sustained user growth and tradable volume.
Neutral
The news is broadly neutral for immediate price action of any single token tied to Backpack because the announcement centers on corporate fundraising, regulatory progress and product plans rather than an immediate market-moving listing or token airdrop that injects large sell pressure. Positive elements — a $50M raise at a $1B valuation, VARA and MiFID II approvals, on-chain SEC-registered equities and a TGE with 25% unlocked — support a bullish narrative over the medium-to-long term by improving trust, institutional access and potential trading volume. However, material near-term upside for a specific Backpack token is limited because the TGE allocates a controlled 25% release designed to prevent early cash-outs, and the company still faces execution and regulatory risks that could delay product rollouts or license approvals. For traders: expect potential gradual positive flow into Backpack-listed products and institutional volumes if execution goes smoothly, but also heightened volatility around future milestones (TGE, licensing wins, IPO timeline). Short-term reaction is likely muted; longer-term impact could be bullish if the firm converts regulatory progress into significant user and institutional adoption.