New York-based independent prime broker Clear Street has been valued at $2bn following the close of a $270m investment from growth equity firm Prysm Capital.

This fresh capital is the second tranche of a $435m Series B funding round. In addition to Prysm Capital, Series B has received backing from a diverse institutional investor base, including public pension funds and endowments.

The funds have been earmarked to expand Clear Street’s reach across new markets and asset classes.

Other projects include bolstering its product offerings, increasing the availability to all market participants and offering solutions to clients looking to migrate to a single-source platform.

The initial tranche of the Series B round was a $165m investment in May 2022. This capital injection, which valued Clear Street at $1.7bn, marked its first venture capital fundraise since its inception.

Backers of that first close included NextGen Venture Partners, IMC Investments, Walleye Capital, Belvedere, NEAR Foundation, McLaren Strategic Ventures, and Validus Growth Investors.

Last year, Clear Street expanded its sales and engineering teams, launched capital introduction and repo businesses, bolstered its securities lending capabilities and updated its client-facing position, risk, operations, and reporting portals.

Speaking on the funding round, Clear Street co-founder and CEO Chris Pento said, “Our team has made incredible strides since our inception in 2018, and this additional funding is further testament to the value that we bring to our clients.

“Over the past year, the number of institutional clients on our platform increased by 500 per cent and our daily transactional volume increased by over 300 per cent. We’re excited to keep this momentum with support from our continued partnership with Prysm.”

Clear Street is a modern infrastructure developer for capital markets. Founded in 2018, it has established a cloud-native, clearing and custody system.