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Cycles Raises $6.4M to Build Privacy‑Preserving Crypto Clearing Network

Backers say the funding will jump‑start pilots that privately net obligations to lower prefunding needs, cutting counterparty exposure and improving capital efficiency.

Overview

  • Cycles, which announced the $6.4 million seed round on Thursday, May 21, 2026, said the new capital brings total funding to $8.7 million and will speed development of its clearing network and products.
  • The company is launching two offerings: Cycles Prime for institutional OTC settlement, with Lynq and FalconX as anchor pilot partners, and Cycles Pay for stablecoin payments for businesses and individuals.
  • Cycles’ clearing engine combines zero‑knowledge proofs and trusted execution environments to privately compute multilateral netting so participants settle only net balances and avoid full prefunding.
  • The startup positions its product as a fix for a structural gap in crypto markets that left firms overexposed and capital‑strained during the October 2025 liquidation event that wiped out roughly $19 billion in leverage.
  • Investors see potential for Cycles to become a coordination layer for settlement that frees up working capital for trading firms and businesses, though wider adoption will depend on integration, interoperability, and regulatory clarity.