San Francisco cryptocurrency startup Sparkswap, which claims to be the first exchange built on the Lightning Network (LN), has revealed its $3.5 million successful seed funding round to launch a Bitcoin-backed decentralized exchange (DEX) on top of LN.

In an official Medium post (Apr 8), Sparkswap founder Trey Griffith said backers of the funding round include blockchain-focused Pantera Capital,  San Francisco-based Initialized Capital, Silicon Valley venture capitalist firm Foundation Capital, and seed accelerator Y Combinator. Their individual contribution amounts were not publicly disclosed.

He also announced that Sparkswap is now ‘live’ for mainnet trading in its public beta version. Griffith explained that Lightning Network Atomic Swap (LNAS) is the core technology that allows Sparkswap users to trade across blockchains without needing to trust Sparkswap or its trading partners, and allows trades to settle “nearly instantly”.

Transaction sizes will be limited for now, and trading will be limited to a single Bitcoin-Litecoin (BTC/LTC) pair. Sparkswap first performed its mainnet LNAS the day before Bitcoin’s 10th birthday on January 2, 2019.

Griffith has purportedly hinted to crypt media at the coming of more trading pairs like Ethereum (ETH) and ZCash (ZEC) soon.