If you live in or around New Jersey and have an interest in financial technology, you may be wondering about some of the top startups in the state. New Jersey has become a hotspot for financial and blockchain innovation, with several very exciting companies launching in recent years. In this blog post, we’ll explore some of the most intriguing New Jersey FinTech startups that you should keep an eye on.
Sporttrade is working to disrupt the sports betting industry by enabling users to trade sports contracts on an exchange platform. This gives bettors more flexibility and potential to profit. Rather than placing bets with a sportsbook, Sporttrade users can buy and sell contracts on the outcomes of sporting events. For example, you could purchase a contract that pays $100 if the Yankees win their next game. If the Yankees do win, you earn a payout. If they lose, your contract expires worthless. You can also sell contracts you purchased previously if your opinion changed or lock in profits. Because other users are on the other sides of contracts, it creates a very liquid marketplace.
Sporttrade completed a $36 million Series A funding round in 2021. The additional capital will help drive user acquisition and expansion into more US states as regulations evolve. If you’re a sports fan, Sporttrade brings an exciting new dimension to potential earnings from your knowledge.
Offchain Labs is working on an innovative Layer 2 scaling solution for Ethereum called Arbitrum. Arbitrum creates a secondary blockchain layer that runs parallel to Ethereum, helping ease network congestion and reduce transaction fees.
The technology allows smart contracts and transactions to be processed on Arbitrum while still benefitting from Ethereum’s security. Crypto startups have flocked to Arbitrum. The quality and diversity of these apps gives the chain a leg up on the competition. The Offchain team consists of Princeton computer science professors and graduates. In June 2021, Offchain Labs announced a $120 million Series B funding round led by crypto investment firms. The project has tremendous momentum with over 200 decentralized apps deployed on Arbitrum less than a year since launching.
If scaling solutions realize their potential, platforms like Arbitrum could enable Ethereum to support demand from millions of daily users. This would pave the way for blockchain adoption to expand exponentially.
Cross River Bank
While less flashy than sports betting or crypto platforms, Cross River Bank is one of the most influential FinTech companies in New Jersey. They provide the infrastructure powering many top financial apps and services. Cross River combines FDIC insured accounts with API banking services utilized heavily in lending, payments, wealth management and more. As a technology infrastructure provider, they make it possible for innovative customer-facing apps to focus on their own offerings rather than building core banking capabilities from scratch.
The company has raised over $100 million from top-tier investors like Battery Ventures and Andreessen Horowitz. Cross River works with massive platforms like Affirm, Rocket Loans and 7.5 million customers rely on their infrastructure. As more finance shifts to mobile-first apps, Cross River provides the picks and shovels making many modern banking experiences possible. Their growth mirrors the broader explosion of FinTech services.
An Exciting Future
From better ways to participate in sports betting, to startups expanding access to crypto apps, to infrastructure making new mobile finance experiences possible – New Jersey has it all. And these companies barely scratch the surface of everything happening locally in the FinTech arena. Between the talent, supportive regulations and access to capital, New Jersey’s future as a top destination for financial startups looks very bright. We can expect much more pioneering innovation allowing technology to shape how we manage every aspect of our financial lives in the years ahead.