Despite that move, Ge said it has been able to maintain its current AuM. Matrixport’s raise is significant given the firm’s home base in Asia. China has recently cracked down on bitcoin mining, triggering the exodus of several firms operating in the region. Matrixport—which previously targeted Chinese clients—is cooperating with the recent regulatory environment, pivoting away from the country and targeting clients in other Asian jurisdictions. The firm is headquartered in Singapore. “We don’t want to break the rules so right now we moved our focus to other countries in Asia,” Ge said. The firm is now targeting Europe and North America, pending the required regulatory approvals.
Matrixport’s fundraise announcements follows similar raises by a long list of crypto firms, including Fireblocks, Paxos, and crypto exchange FTX. Matrixport has raised $129 million to date, according to a spokesperson. As for the round, it was backed by partners at DST Global, C Ventures, and CE Innovation Capital, as per a media release. Other investors include Tiger Global, Polychain, and Dragonfly.
Matrixport mobile application “We are not an exchange, we are not a wallet,” John Yuesheng Ge, CEO of Matrixport said in an interview with The Block. “We are a crypto bank.”
This post has been updated for clarity.
Matrixport was bootstrapped by crypto mining legend Wu Jihan, former chairman and a co-founder of Bitmain. In 2020, Bloomberg reported it was seeking to raise $40 million at a $300 million valuation. Ge said that interest in the company has been buoyed by its yield offerings, which provide a return that trumps that of the average bank. The firm offers a way to invest in funds that return yields above 4%. Funds parked into those funds are used for “crypto-backed lending, leverage trading (bull or bear), or other lending business of Matrixport platform,” according to a description on its mobile app.
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- Matrixport closes $100 million proceeds with pre-currency valuation of ~$1 billion
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