Matrixport Technologies Pte, one of Asia’s largest cryptocurrency lenders, is looking to raise a whopping $100 million in new funding at a valuation of $1.5 billion. This development comes at a time when major cryptocurrency lenders such as BlockFi and Genesis have faced a massive liquidity crisis amid the collapse of FTX.
The Singapore-based crypto lender said they have a commitment of at least $50 million from lead investors. Despite the crypto winter this year, the company is looking at a valuation of $1.5 billion, up 50% from $1 billion last year, people familiar with the matter said.
The deal is yet to be finalized as the company seeks investors for the other half of the round. Ross Gan, the company’s head of public relations, also confirmed the fundraising plan. He said:
“Matrixport routinely engages with key stakeholders as part of the normal course of business, including investors eager to participate and enable our vision as a digital asset financial services provider.”
Matrixport Technologies was founded by crypto billionaire Jihan Wu. The company offers a range of different crypto services, such as trading, custody, and structured products, to both retail and institutional players.
In Asia, it competes with players like Babel Finance, which also suffered a liquidity crisis earlier this year due to the collapse of the Terra ecosystem.
Crypto lender failures this year
The crypto winter of 2022 and the collapse of key players such as Terra and FTX have pushed cryptocurrency lenders to their limits. Amid these high-profile crypto breakdowns, there have been major concerns about loose regulatory action and a lack of guardrails to protect investors’ digital assets.
However, Matrixport said it is not at risk of insolvency after FTX’s collapse. However, dozens of his clients have suffered serious losses as a result of their exposure to FTX. Matrixport said it handles $5 billion worth of crypto transactions every month. In addition, it also has tens of billions of dollars in assets under management and custody, Bloomberg reports.
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