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Matrixport wants $100 million in funding at a $1.5 billion valuation as the crypto space still reels from the FTX collapse.
Matrixport Technologies Pte is seeking substantial funding at a higher valuation amid the FTX fallout. According to reports, the leading Asian crypto lender eyes $100 million in funding at a valuation of $1.5 billion. So far, Matrixport has already secured commitments from lead investors for half of the targeted funding value. However, the blockchain-servicing platform is still looking for investors for the remaining $50 million of the round.
Reports also state that the Matrixport deal has not been finalized, and the round’s lead investors presently remain unknown. However, Ross Gan, head of public relations for the company, confirmed the fundraising plan, saying:
“Matrixport routinely engages with key stakeholders as part of its normal course of business, including investors keen to participate and enable our vision as a digital assets financial services provider.”
Matrixport Eyes Funding Unfazed by FTX Fate
The Matrixport funding quest comes in the aftermath of the shocking collapse of Bahamian-based crypto exchange FTX. The epic failure of FTX has spooked investors within the crypto space and reignited conversations regarding lax regulation. In addition, as investors continue to weather a series of high-profile crypto failures, questions regarding adequate protection of client assets abound once again.
Following FTX’s bankruptcy amid a dwindling crypto marketplace, Matrixport revealed that it was not at risk of insolvency this month. However, a large number of its clients sustained varying losses through exposure to FTX-linked products on its platform.
Nonetheless, Matrixport said it oversees $5 billion worth of trades every month. The prominent crypto lender also disclosed that it has several more billions worth of assets under management and custody. Matrixport also has a headcount of close to 300 people.
As one of the biggest crypto lenders in Asia, Matrixport looks to usher in a familiar Wall Street formula to the digital asset space. Founded by crypto billionaire Wu Jihan, the firm offers a wide range of crypto financial services to both retail and institutional investors. These services include custody and trading of virtual assets, as well as the provision of structured products.
In Asia, Matrixport competes with platforms like Babel Finance and Amber Group. While Babel Finance is one of the firms undergoing restructuring in the fallout from this year’s crypto meltdown, Amber Group enjoys the backing of Temasek Holdings Pte.
Matrixport’s founder Wu is also the co-founder of leading crypto mining platform Bitmain Technologies Ltd. Last summer, the Chinese billionaire cryptocurrency entrepreneur transformed his second venture into a unicorn. During the stated period, Matrixport raised more than $100 million from a group of investors, including DST Global, Tiger Global, IDG Capital, and Dragonfly Capital.
Matrixport spun out of Bitmain in 2019 after the BTC-mining giant encountered a cash crunch. In addition to co-founding Matrixport, Wu presently serves as the blockchain-focused firm’s chairman. Furthermore, the Chinese crypto entrepreneur chairs mining firm Bitdeer Technologies Holding Co.
Born in 1986, Wu is one of the five youngest billionaires in Asia.