Crypto lender Matrixport seeks $100M funding despite lending crisis

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Matrixport, the cryptocurrency firm founded by Bitmain co-founder Wu Jihan, is in the process of raising $100 million in funding despite the ongoing crypto market crisis.

Bloomberg reported on November 25 that lead investors have already committed $50 million to Matrixport’s new funding round at a $1.5 billion valuation. The deal is yet to be finalized as Matrixport is still looking for investors for the second part of the round.

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According to the company, the new round is part of Matrixport’s general funding agenda. The firm’s Head of Public Relations Ross Gann said, “Matrixport regularly engages with key stakeholders as part of its normal course of business, including those interested in participating and enabling our vision as a digital asset financial services provider.” investors are involved.

Matrixport’s new funding comes a year after its $100 million Series C funding round held in August 2021, making it a unicorn with a $1 billion valuation.

The fundraising was led by leading global venture capital firms including DST Global, C Ventures and K3 Ventures. Other contributors to the round include leading industry investors such as Tiger Global, Qiming Venture Partners, CE Innovation Capital, A&T Capital, as well as existing investors such as Polychain, Dragonfly Capital, Lightspeed, IDG Capital and others.

According to Bloomberg data, Matrixport handles $5 billion in trades every month and has billions of dollars in assets under management and custody. The firm reportedly employs around 300 people.

Established in February 2019, Matrixport is one of the largest cryptocurrency lenders in Asia, offering a wide range of crypto services including trading and custody. The company also offers crypto and stablecoin loans, as well as zero-fee loans with 0% interest rates and liquidation protection.

Matrixport is one of the few crypto lending platforms that have not been affected by the ongoing cryptocurrency lending crisis. As previously reported by Cointelegraph, some of the largest crypto lending platforms including Celsius and Blockfi have faced major issues this year due to the ongoing bear market and the associated crisis of cryptocurrency lending.

related: Cryptocurrency lender HodlKnot reportedly facing police investigation in Singapore

Wu’s crypto company also said that it was not heavily affected by the ongoing FTX transition, reporting some issues due to the crash of Sam Bankman-Fried’s crypto exchange. On November 11, Matrixport informed of 79 of its users suffered losses following the FTX issue, adding that the affected products include the BTC fixed income product and the Victoria BTC Fund product.

“We must emphasize that Matrixport’s products are subject to strict segregation from one another so that one affected product does not affect other products as the underlying asset and fund flows are different,” the firm said.