26 May Crypto Company Babel Finance Raises $80 Million, Valuation Hits $2 Billion (Report)
Babel Finance – a cryptocurrency service provider that offers digital asset lending – reportedly secured $80 million in a Series B financing round. The investment boosted the company’s valuation to $2 billion.
Babel Focuses on the Long Run
As reported by Reuters, the fundraiser was led by leading venture capital firms, including Circle Ventures, 10T Holdings, Jenerations Capital, BAI Capital, and Dragonfly Capital. Family offices from the Asia-Pacific region were also among the investors.
The $80 million is not Babel Finance’s first closed financing round. Last year, it raised $40 million from major institutional investors like Tiger Global Management, Sequoia Capital China, Zoo Capital, and others.
Speaking on the move, Del Wang – Chief Executive Officer of the company – noted that the crypto market is “full of opportunity and hidden risks.” However, Babel Finance remains engaged with the sector as it believes in its success in the long-term:
“From the perspective of short-term profits, the retail market and altcoins may have higher profit margins, but we pay more attention to the long-term development of the industry and aim to lead in institutional financial services and innovation.”
The executives further argued that the digital asset sector has become more “institutionalized.” As such, the firm will aim to “explore and participate in the building of the fundamental financial order and rules for the industry,” Wang concluded.
Based in Hong Kong, Babel Finance has already applied for business licenses in other countries such as Luxembourg and the United Kingdom. The cryptocurrency lender has around 500 clients and finished 2021 with a loan balance of over $3 billion and an average monthly trading volume of $800 million in derivatives.
What’s new With Crypto in Hong Kong?
In January, the authorities of China’s special administrative region presented plans to introduce a regulatory framework for cryptocurrencies by July this year. The legislation will aim to establish Hong Kong as a digital asset hub for the East Asian region.
The Hong Kong Monetary Authority (HKMA), though, has a different vision for stablecoins, opining they could harm financial stability. As such, those might face enhanced scrutiny.
In March this year, the blockchain platform Huobi Technology displayed its intentions to launch ETFs that track cryptocurrencies for retail investors in Hong Kong. Specifically, the financial product will be suitable for those with less than $1 million in assets.
A few weeks ago, Samsung Asset Management said it is willing to list a blockchain-focused ETF in Hong Kong before July. If the product goes live, it will become the first of its kind in Asia that includes actual cryptocurrency exposure.
Post is imported from RSS feed, by one of our guest editors. G6 does not edit or moderate the content. G6 is not responsible for your actions. No rights owned by G6. To remove the post, please email us at [email protected]