(Bloomberg) – Matrixport Technologies Pte, One of Asia’s Largest Crypto Lenders, Seeks $100M in Funding at Higher Valuation Even as FTX’s Fall Reverberates in the Digital Asset Market .
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The Singapore outfit has lead investor commitments for $50 million at a valuation of $1.5 billion in the round, up from $1 billion a year earlier, according to people familiar with the matter. The deal has not yet been finalized and the company is still seeking investors for the other half of the round, the people said, asking not to be identified while discussing private information. It is not immediately clear who the main investors in the cycle are.
“Matrixport regularly engages with key stakeholders as part of its normal business, including investors willing to participate and realize our vision as a provider of digital asset financial services,” the relationship manager said. company announcements, Ross Gan, confirming the fundraising plan.
Matrixport, founded by crypto billionaire Wu Jihan, belongs to a class of companies trying to bring a familiar Wall Street formula to the virtual asset landscape. It offers crypto financial services, from custody to trading and structured products, for both institutional and retail clients. In Asia, it competes with companies like Babel Finance, which is restructuring after being hit by this year’s crypto meltdown, and Amber Group, backed by Temasek Holdings Pte.
Investors have been burned by a string of high-profile crypto failures over the past few months, sparking fresh concerns over loose industry regulation and a lack of safeguards to protect client assets. In the aftermath of FTX’s collapse, Matrixport said this month it had no risk of insolvency from Sam Bankman-Fried’s empire, but dozens of its customers suffered losses due to exposure to FTX-related products on its platform.
Matrixport says it handles $5 billion in trades each month and has tens of billions of dollars in assets under management and custody, according to an investor filing seen by Bloomberg News. The company employs nearly 300 people, he said.
Wu, the co-founder of crypto mining giant Bitmain Technologies Ltd., turned his second venture into a unicorn last summer when Matrixport raised over $100 million from backers including DST Global. and Tiger Global. Matrixport also counted IDG Capital and Dragonfly Capital as investors.
Wu spun off Matrixport from Bitmain in 2019, after the world’s largest maker of Bitcoin mining rigs hit a cash crunch. The Chinese crypto mogul is now chairman of Matrixport and its mining company Bitdeer Technologies Holding Co.
Read more: Crypto firm Amber seeks $100 million fund at ‘flat’ valuation
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