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Rails is a perpetual trading platform that combines centralized order processing with on-chain custody of user funds. It aims to provide high-speed trade execution while maintaining the transparency and security benefits of blockchain technology. [1] [2]
Rails operates using a hybrid architecture that seeks to leverage the advantages of both centralized and decentralized systems. The platform utilizes a centralized matching engine to process and match trades rapidly, aiming for sub-millisecond speeds. However, user assets are held in a secure, audited smart contract on a blockchain, specifically Ink, a layer-2 network developed by Kraken. This structure is designed to ensure that users retain control over their funds while benefiting from efficient trade execution. [1] [2]
The platform focuses on transparency by cryptographically aggregating transactions and posting them on-chain. Users can verify their transactions, which are included in a Merkle tree, using a transaction explorer. This approach is intended to provide verifiability without compromising user privacy. The on-chain custody model, supported by audited smart contracts, is a core security feature, aiming to prevent issues related to centralized control of user funds. [1] [2]
Rails was founded in 2023 by Satraj Bambra, Megha Bambra, Rick Marini, and Brent Vegliacich. The founding team previously worked together on BlockEQ, a crypto wallet company that was acquired by Canadian exchange Coinsquare in 2018. [3] [4] [2]
The company completed a $6.2 million Seed Round in March 2024. This round was led by Slow Ventures, with participation from CMCC Global, Round13 Capital, and Quantstamp. [4] [2]
In June 2025, Rails announced an additional $14 million raise, bringing the total funding to $20 million. The platform transitioned from a project to a company in March 2024 and targeted a full public launch in the summer of 2024. [4]
Satraj Bambra, Co-Founder & CEO, stated regarding the platform's development;
"As someone who’s watched this industry wrestle with performance versus self-custody for years, Rails is the first exchange I’ve seen where neither security nor speed is compromised." [2]
Rails employs a hybrid technological architecture combining centralized and decentralized components.
The on-chain components are hosted exclusively on Ink, a layer-2 blockchain developed by Kraken. [2]
Rails highlights several key features of its platform:
The primary use case for Rails is perpetual futures trading. The platform initially supports perpetual futures contracts collateralized with stablecoins. The platform's design aims to cater to traders seeking both high-speed execution and self-custody of assets.
Rails has raised a total of $20 million in funding as of June 2025. [2]
Investors and partners include:
The founding team of Rails consists of four individuals with backgrounds in technology, finance, and law. [3]
Rails is registered with the Cayman Islands Monetary Authority (CIMA) under the Virtual Asset Service Provider (VASP) and Securities Investment Business Act (SIBA) regimes. The company states it collaborates with regulatory authorities to ensure compliance. [1] [9]