Velotrade has launched a new crypto-funded trading platform, entering the prop trading market with a model built by former institutional derivatives traders from JP Morgan, Dresdner Kleinwort, and Bank of America. The company says traders can access funded crypto accounts from $5,000 to $200,000 without risking their own capital.
The firm is trying to stand out in a crowded prop market by leaning on traditional finance experience and a different revenue model. Instead of making most of its money from failed challenge fees, Velotrade says it uses institutional liquidity bridges and AI-driven hedging to mirror selected trader positions in real markets, so the business works best when traders are profitable.
A crypto prop firm built by traditional market veterans
Velotrade says it was founded by former institutional traders and is operated by Velotrade Re Limited, a Hong Kong company incorporated in November 2025. The launch is separate from Velotrade Management Limited, the founders’ existing fintech trade finance business, which the company says has paid out more than $2.5 billion to clients worldwide since 2016.
CEO Gianluca Pizzituti previously worked on the derivatives desk at Dresdner Kleinwort in London and later ran a proprietary high-frequency trading firm in FX and equity indices from Singapore. Executive Chairman Vittorio De Angelis spent more than 30 years in capital markets and risk management, including roles trading equity derivatives at JP Morgan and Dresdner Kleinwort, later rising to co-head of equity derivatives at Bank of America.
What makes Velotrade’s model different
Most retail prop firms earn heavily from challenge fees. Velotrade says it is built on the opposite logic. The company claims it mirrors selected funded trader positions into real markets using institutional liquidity bridges and AI-driven hedging, meaning the firm earns alongside successful traders rather than mainly from those who fail.
In simple terms, Velotrade is trying to present itself less like a “test fee” business and more like a trading business with a prop-style front end.
Two challenge formats, but crypto only
Velotrade says it offers two evaluation formats:
- a two-step challenge with 10% overall drawdown and 5% daily drawdown
- a one-step challenge with 7% overall drawdown and 4% daily drawdown
The company also says it is deliberately focused only on crypto. It does not offer forex, indices, or equities. Instead, it trades a range of cryptocurrencies with leverage of up to 6x on BTC and ETH.
Fast payouts in stablecoins are part of the pitch
Velotrade says funded traders can request their first payout after 14 calendar days, with later payouts available weekly on request. The company says all payouts are processed within 24 hours in USDC or USDT.
That is an important operational detail because quick, transparent payouts are one of the biggest trust issues in the prop trading market. Velotrade is clearly using stablecoin settlement as a way to make that promise more credible.
Why this matters for crypto
- This is another sign that crypto prop trading is becoming more professional, with founders coming from institutional derivatives and risk management backgrounds.
- Velotrade is trying to bring a more traditional market-making mindset into a prop segment that is often criticized for weak controls and challenge-fee dependence.
- The use of USDC and USDT payouts shows how stablecoins continue to function as the settlement rail for global crypto trading businesses.
- The “crypto only” focus suggests the firm sees enough demand in digital assets to build a standalone prop product without needing to bolt crypto onto a forex-style platform.
What to watch next
- Whether Velotrade can attract serious crypto traders in a market already crowded with funded trading programs.
- How well its hedging and institutional-liquidity model performs during high-volatility periods, when many prop firms struggle operationally.
- Whether the company expands beyond BTC and ETH leverage products into a broader crypto derivatives setup. This is an inference based on the “wide range of cryptocurrencies” language in the release.
- If Velotrade publishes real trader payout or funded-account metrics after launch, which would help show whether its business model works in practice.