W Group, the investment ecosystem behind crypto exchange WhiteBIT, has invested in SwapGlobal, a derivatives provider preparing to offer institutional pre-IPO derivatives. The announcement on October 23 disclosed no deal value but indicated the company's first pre-IPO transactions were being prepared.
The funding round includes backing from Marcel Boekhoorn and Amsterdam-based Kenzoll Capital alongside W Group. SwapGlobal intends to use the capital for trading and working capital to expand beyond cryptocurrency into foreign equities, computing power, and digital assets.
How Pre-IPO Derivatives Work
SwapGlobal's model offers clients contractual exposure to a company's value without direct share ownership. The arrangement provides a payoff linked to a private company's valuation but does not grant voting rights, direct ownership, or the ability to transfer actual shares.
The company plans to serve hedge funds and asset managers through an over-the-counter derivatives model. SwapGlobal describes its services as limited to Eligible Contract Participants under U.S. rules and offers swaps, forwards, perpetual forwards, and options through ISDA documentation.
Key Operational Considerations
SwapGlobal says it will use qualified custodians to hold collateral and hedge institutional client positions. Clients access the service through an interface or API.
The platform applies initial margin as a fraction of a trade's notional value, followed by daily variation margin. This structure means an institution's liquidity needs can change after entering a position. The contract terms determine how the exposure settles, while custody arrangements address where collateral is held—both separate components requiring independent assessment.
The announcement provides SwapGlobal's business direction rather than detailed terms of completed transactions. Completed deals with identifiable terms would offer the next evidence of how the proposed model functions.
