Backpack is a Web 3.0 custodial services provider. The firm has recently informed us that it is working on issuing a cryptocurrency exchange after acquiring a license from the regulators in Dubai.
The license is issued by the Virtual Asset Regulatory Authority (VARA). Backpack itself is a subsidiary of Coral, a crypto infrastructure firm that utilizes zero-knowledge proof-of-reserves or zk-proofs, and multo-party computation features.
VARA Regulates All Crypto-Related Firms in Dubai
VARA allows firms to regulate all virtual currency-related activities throughout the Emirates of Dubai. Armani Ferrante, the CEO of Backpack, navigated through difficult circumstances last year.
He was working at Alameda Research as a software engineer before working on an independent project called Coral and raising $20 million in funds with the help of FTX Ventures, a few weeks after the demise of the trading platform.
However, FTX exchange filed for bankruptcy, resulting in Ferrante to go through trouble of releasing $14.5 million in funds that was locked at the defunct exchange.
Backpack CEO to Recover His Funds from Bankrupt FTX Exchange
Backpack CEO Ferrante did not stop his efforts to establish a new cryptocurrency exchange despite the massive challenges as per media reports. The executive faced many problems in recovering the investment funds on FTX including $10 million in investment from the now-defunct trading forum.
His mission to establish a new type of cryptocurrency exchange has been hailed as an inspirational event. He recently claimed that cryptocurrency exchanges should be hosted in a decentralized manner like blockchains and mandate Proof of Reserves or regular audit reports.
Following the demise of FTX exchange, the executive continued to make efforts to save his business and recover locked funds. The trading platform launched beta version in November but it is yet to open for trading. The trading forum intends to launch public service in the first quarter of 2024, as per a new statement issued by Backpack.
The team is working on enabling various new features on the platform such as derivative contracts, margin trading, cross-collateral option, etc. Furthermore, the company said that its compliance team hails from firms such as, State Street, Barclays,Coinbase, and HSBC.
Coral Completed Funding Round in September
Coral is a crypto development protocol. The firm started and completed a funding round to raise $20 million led by FTX Ventures, Multicoin Capital, Anagram, Jump Crypto, Frictionless, and K5 Global among other investors.
The funds were raised for the creation of a crypto custodial services provider with NFT execution options called xNFT. However, following the demise of the FTX exchange led the firm to go for alternative methods. Coral recently announced a beta version of the project and opted for open-sourced code options. Ten crypto projects have signed up for adding custodial support using Backpack.
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